By Chris Nicholls
HOPKINTON, MASSECHUSETS and SAN DIEGO, CALIFORNIA: Information infrastructure specialist EMC Corporation has acquired storage specialist Iomega Corporation in a cash tender offer worth approximately US$213 million (AU$228 million).
The purchase means Iomega’s products, brand name and distribution will become part of
EMC’s new Consumer/Small Business Products Division, led by Iomega chief executive Jonathan Huberman. EMC Storage Platforms will also include EMC Retrospect and EMC LifeLine software products.
Iomega chief executive Jonathan Huberman, 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.”
Iomega has partnered previously with EMC, packaging and selling EMC Retrospect backup software with all its external disk drives. It also announced in January it would use EMC’s LifeLine software in its multi-drive network storage products, which are expected this summer when it launches its next-generation StorCenter network hard drives.
EMC intends to commence the tender offer in the next two weeks, with completion expected in the second quarter of 2008. The acquisition is expected to have no material impact on EMC financial results for the full 2008 fiscal year.
EMC chairman, president and chief executive, Joe Tucci, said Iomega would “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,” he said.