Imation Corp. [IMN], which has aggressively used acquisitions in recent years to hone its focus from a hodgepodge of products ranging from medical imaging to specialty paper to a small group of digital recording products like CDs and DVDs, on Monday announced its purchase of Xtreme Accessories LLC, which makes consumer electronics products and accessories for Apple Inc.'s [AAPL] iPhone and iPod. Imation described the deal as "another building block in our strategy as we build a portfolio of strong brands that resonate with consumers."

Unlike some of Imation's other purchases, including its $330 million acquisition of consumer disc storage maker Memorex International Inc. and its $370 million purchase of TDK Corp., which also makes digital recording media, Xtreme fits a little less clearly into the company's new focus on consumer recording technologies. It's unclear if Imation is simply acting to tap into the strong demand for the iPhone and iPod, or if it sees a way to develop or promote better ways to store digital files on Apple products. The curiously structured deal suggests Imation itself may not be completely certain of its the value. It has agreed to pay an initial purchase price of $9 million with potential additional payments of up to $10 million over the next three years, depending on the target's financial performance. - Andrea Orr

See June 30 announcement from Imation on Xtreme Accessories acquisition
See April 2007 story on Imation's acquisition of TDK Corp. from TheDeal.com
See March 2006 story on Imation from TheDeal.com
See January 2006 story on Imation's acquisition of Memorex from TheDeal.com