Storage giant EMC has signed an agreement to buy rival storage drive and disk manufacturer Iomega for US$213m in cash.
The deal will expand EMC’s reach into the fast-growing consumer and small business market.
The acquisition – part of a cash tender offer of US$3.85 per share – is expected to conclude in the second quarter, subject to regulatory approval.
“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,” said Joe Tucci, chief executive and chairman of EMC.
“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,” Tucci added.
When the deal is complete, Iomega will serve at the core of EMC’s new consumer and small business products division, which will be led by Iomega chief executive Jonathan Huberman.
“EMC brings to Iomega a new opportunity for accelerated innovation that will translate into new product capabilities for Iomega’s extensive customer base,” said Huberman.
“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.”
By John Kennedy