Storage vendor Nexsan has taken control of its own destiny -- and revamped its channel program to boot -- after parent company Imation shed its other assets and became a holding company for Nexsan.
Nexsan, best-known for its midrange disk-based storage arrays, is now the sole asset of Imation, which acquired Nexsan in 2013, said Robert Fernander, CEO for the Campbell, Calif.-based vendor.
Fernander told CRN that Nexsan is a much stronger company now that it has stepped out of Imation's shadow.
"We suffered through the acquisition by Imation, and now we're coming through the back end," he said.
Imation acquired Nexsan in a move to bring Nexsan's storage technology with Imation's security offerings, particularly its IronKey series of encrypted storage devices, to the midmarket, Fernander said. Imation also had an LTO tape business, and owned the consumer-focused Memorex brand.
However, after Fernander and other investors were elected to Imation's board of directors last May, they looked carefully at Imation's businesses.
"We saw some businesses like LTO tape declining, as well as a focus on the brand rather than product," he said. "Both were wound down in the fourth quarter. And IronKey was sold to Kingston for its Data Container business."
Everything else was sold off, including Imation's Oakdale, Minn.-based corporate headquarters, Fernander said. "So now we have Nexsan," he said. "Everything else was converted to cash. Now we have the resources to develop Nexsan and make acquisitions."
As a result, Imation is now a holding company, while Nexsan is an operating company wholly owned by Imation. Fernander serves as CEO of both companies.
Imation last month made news when Imation, along with Clinton Group, an investor in Imation, wrote a letter to Violin Memory, a Santa Clara, Calif.-based developer of high-performance flash storage solutions, advising the company to seek a strategic buyer. Both Imation and Clinton Group are investors in Violin Memory.