IRVINE, Calif. — I/OMagic Corp. (OTCBB:IOMG), a provider of data storage products, has sold 70 per cent of its shares to China’s Jiangxi Greatsource Display Tech Co. Ltd. (commonly known as “KHD”) for US95 million.
The companies said they entered into the agreement — signed May 9 but only announced today — to team up to bolster PC storage market share, co-develop and market next generation LCOS HDTVs and assemble other high definition TV platforms to sell into the North American and Chinese markets.
I/OMagic makes data storage products (such as CD-RW and DVD+/-RW drives, USB Portable Storage Devices, external USB hard drives and floppy drives, including its DataStation, Data To Go and GigaBank™ products).
Its products are sold through the channel under the I/OMagic, Hi-Val and Digital Research Technologies brands.
The agreement says the US$95 million will be paid in cash over the next 12 months.
I/O Magic said the deal offers significant potential to market and co-develop products to sell throughout North America and China.
The companies also plan to establish a U.S.-based manufacturing and assembly plant to better serve the North American market.
Tony Shahbaz, I/OMagic’s CEO said the company plans to launch HDTV products under its Digital Research Technologies brand initially in North America and China, and plans to eventually expand globally.
