Top Apple-gear maker now is a Minnesotan
I'm a fan of XtremeMac, one of the better makers of gear for Apple products such as the iPhone, iPods and the Apple TV. So it's with mixed feelings that I'm seeing a bigger technology company add XtremeMac to its acquisition portfolio.
One the bright side, the buyer is quite familiar to me: It's Minnesota-based Imation, the famed data-storage company (and 3M offshoot) that earlier acquired rights to the TDK and Memorex brands in a bid to boost its consumer relevance.
Imation offers some nifty consumer products of its own, such as supersmall flash drives. But it's not big on Apple-type products of the kind you'd find at one of those popular Apple retail stores, so XtremeMac looks like a good acquisition.
A reporter on the Pioneer Press' business desk passed on the following after talking to Imation spokesman Brad Allen:
-- The XtremeMac team remains intact in Florida. Imation is not moving or touching them. That should reassure you. They said they recognize that the founder, Gary Bart, has won awards and acclaim for innovation and they don't want to mess that up (my words, not Allen's).
-- Imation expects to be able to use its global distribution network to help expand the regions where XtremeMac products are sold -- "to put more legs underneath it," as Allen puts it. In short, they want to grow the sales by expanding geographically and maybe by getting XtremeMac into new stores where Imation already has a presence but XtremeMac does not.
-- Imation is also very happy with the acquisition because XtremeMac has a strong presence on shelves in Apple stores, among other places, and that will increase Imation's presence in a coveted retail space where Apple fans shop.
XtremeMac apparently isn't in the greatest financial shape, in any event:
-- The business had "minimal returns" in 2007, Allen said. Its profits or losses won't impact Imation's finances this fiscal year, meaning there's not enough profit (or loss) there to affect it one way or the other.
Large tech companies swallowing boutique Apple-accessory makers is a bit of a trend; The Royal Philips Electronics tech giant last year acquired Digital Lifestyle Outfitters, a company quite similar to XtremeMac.
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