Business News
EMC To Acquire Iomega
Wednesday 09. April 2008 - Advances Support for the Rapidly-growing Information Storage Needs of Individual Consumers and Small Businesses
EMC Corporation (NYSE:EMC), the world leader in information infrastructure solutions, and Iomega Corporation (NYSE:IOM), a global leader in data storage and protection for consumers and small businesses, today announced a definitive agreement for EMC to acquire San Diego-based 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.
EMC intends to commence the tender offer in the next two weeks, with completion of the tender offer expected in the second quarter of 2008, subject to customary closing conditions and regulatory approvals. The acquisition is expected to have no material impact on EMC financial results for the full 2008 fiscal year.
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.”
Jonathan Huberman, Chief Executive Officer, Iomega Corporation, said, “Today begins an exciting new future for Iomega and our customers. Once the acquisition is final, Iomega will be able to fully leverage EMC’s vast assets to grow our business globally. EMC brings to Iomega a new opportunity for accelerated innovation that will translate into new product capabilities for Iomega’s extensive customer base. Through the renowned Iomega brand; thousands of retail, direct marketing and distribution channel partners; and Iomega’s talented people, EMC will be able to extend its reach into the high-growth consumer and small business market segments.”
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 and reporting to Joel Schwartz, Senior Vice President and General Manager, EMC Storage Platforms) will also include EMC Retrospect(R) and EMC LifeLine(TM) software. EMC plans to build the division around the strength of the Iomega organization, brand, products and partner ecosystem.
Iomega adds to the growing list of product offerings EMC is amassing for the consumer and small business markets. As long-standing partners, EMC and Iomega will continue to build upon their existing foundation of technology integrations. Since 2004, Iomega has been packaging and selling EMC Retrospect backup software with all its external disk drives. In January 2008, EMC announced the new EMC LifeLine software for the consumer, home office and small business markets. Simultaneously, Iomega announced plans to embed EMC LifeLine into its multi-drive network storage products, which are expected this summer with the launch of its next-generation StorCenter Network Hard Drive products.