Enterprise storage and information lifecycle management (ILM) vendor EMC has bought Iomega, better known for its storage solutions targeted at consumers and small businesses. The deal is worth about $213-million.
EMC believes the addition of Iomega’s products, brand name, route to market and industry expertise will enhance its reach and focus in the rapidly-growing consumer and small business markets.
EMC will 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, says: “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, CEO of Iomega, adds: “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 – to be led by Huberman – 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.