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Subsequent Events
9 Months Ended
Sep. 30, 2015
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
On October 30, 2015, Imation terminated its Japan Credit Agreement entered into on July 16, 2013. At the time of termination, the Company paid down its short-term borrowings of $7.6 million. Additionally, during the fourth quarter of 2015, capitalized costs for the credit facility of $0.1 million will be charged to interest expense.
On October 14, 2015, Imation acquired substantially all of the equity of Connected Data, an emerging enterprise-class, private cloud sync and share company, in a transaction valued at $7.5 million at closing. The acquisition of CD augments Imation’s vision in delivering a comprehensive and secure storage, backup and collaboration ecosystem. The Company intends to complete the acquisition of Connected Data through a short-form merger as soon as practicable. The purchase price consists of approximately $0.9 million in cash, 1,511,151 shares of Imation common stock valued at approximately $4.0 million and approximately $2.6 million in repayment of debt. Up to $5.0 million in cash and shares in earn outs are possible based upon Connected Data’s performance through 2016 and the first half of 2017. The accounting for the CD acquisition will take place during the fourth quarter of 2015. See Note 16 - Related Party Transactions for additional information on the CD acquisition.
On September 28, 2015, Imation entered into an agreement with TDK providing for the transfer of 6,675,764 shares of Imation common stock, subject to adjustment, from TDK to Imation, the termination of the Company's license agreements with TDK and the termination of certain rights of TDK under its Investor Rights Agreement with the Company. After termination of the rights agreement, Imation will no longer have the right to use the licensed intellectual property except as required through December 31, 2015 to fulfill already existing obligations. TDK will no longer have rights to designate one employee or director of TDK as a nominee to stand for election as a director of the Company, information rights, preemptive rights, and demand registration rights. The Imation shares will be transferred back to the Company during the fourth quarter of 2015 and the corresponding accounting will be recorded at that time.