EMC Corporation announced a definitive agreement for EMC to acquire Iomega in a cash tender offer of $3,85 per outstanding share, or approximately $213 million. The addition of Iomega's products, brand name, route to market and industry expertise will enhance EMC's reach and focus in the rapidly-growing consumer and small business markets.
Joe Tucci, EMC chairman, president and CEO, said: "Iomega will play a key role in EMC's strategy to expand our information storage and management capabilities deeper into the high-growth consumer and small business markets. In addition to industry-leading products and a household consumer brand, Iomega brings to EMC a deep knowledge of and established business practices for servicing consumers and small businesses. Iomega and EMC represent a powerful combination that ultimately will benefit these customers through the protection, security and simplified management of their rapidly growing information."
Upon completion of the acquisition, Iomega will serve as the core of EMC's new Consumer/Small Business Products Division. The new division (led by Jonathan Huberman, chief executive officer of Iomega Corporation and reporting to Joel Schwartz, senior vice president and general manager, EMC Storage Platforms) will also include EMC Retrospect and EMC LifeLine software. EMC plans to build the division around the strength of the Iomega organisation, brand, products and partner ecosystem.
Iomega adds to the growing list of product offerings EMC is amassing for the consumer and small business markets.