Imation has bought fellow storage company Memorex for $330 million in cash deal.

Imation will also pay between $5 million to $45 million over three years to Memorex' owners, depending on how the privately held business performs after the acquisition. The companies expect to integrate their businesses fully by the end of the year.

Memorex CEO Michael Golacinski, will head Imation's consumer business. Imation will retain the Memorex brand, which is widely recognised by consumers for recordable CDs and DVDs, although its heyday was in the past with cassette tapes.

Imation is known mainly for providing tapes and diskettes for storing computer data, but also has a consumer storage business in CDs and DVDs. The company hopes the Memorex acquisition will boost its presence in that area, the company said.