Imation, the storage and data security outfit, has bought Nexsan, the privately held disk-based and solid-state storage systems shop, for $105 million in cash and $15 million in stock.

Imation said Nexsan, which has raised about $36.5 million in venture funding and twice abandoned the idea of going public, had 2011 revenues of $82 million and is still growing. It reportedly has gross margins in the 40% range. The deal is expected to be immediately accretive although Nexsan's profitability is questionable.

Imation means to use Nexsan to focus on the SMB market with purpose-built storage systems and appliances. In a statement it said, "This is a market that Nexsan knows well. Nexsan's management team has grown this business from start-up to more than $80 million, with strong gross margins. Nexsan is a successful company that is addressing some of today's fastest growing trends in storage, and we are pleased that its management team, including CEO Philip Black, will join Imation."

Nexsan has about 200 employees in the US, UK and Canada.

Its investors included MFP Partners, the mutual fund controlled by Michael Price; RRE Ventures; VantagePoint Venture Partners; and the Fonds de Solidarité des Travailleurs du Québec, a fund managed by the Quebec Federation of Labor, the largest union in the province.