EMC to Acquire Iomega

Archive notice: This article was originally published on April 11, 2008. Links and embedded videos are preserved as part of the historical record.

Through Iomega’s products, brand name, market access and industry know-how, EMC can extend its reach in the rapidly growing consumer and small-business market and address these market segments more specifically. Once the acquisition is completed, Iomega will form the core of EMC’s new Consumer/Small Business Products Division.

The new division, led by Jonathan Huberman, CEO of Iomega Corporation, will report to Joel Schwartz, Senior Vice President and General Manager, EMC Storage Platforms, and will also be responsible for the EMC Retrospect and EMC LifeLine software products. EMC plans to build this division on Iomega’s strong organisation, brand, products and distribution network.

Subject to all customary closing conditions and regulatory approvals, the acquisition is expected to be completed in the second quarter of 2008. Under the acquisition agreement, EMC will acquire Iomega for a purchase price of approximately 213 million US dollars, equivalent to 3, 85 US dollars per outstanding share). EMC expects the acquisition to have no impact on its financial results in 2008.

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“Iomega will play a key role in our strategy to bring our information storage and information management capabilities deeper into the high-growth consumer and small-business markets, said Joe Tucci, Chairman, President and CEO of EMC. “Alongside industry-leading products and a very strong consumer brand, Iomega also brings EMC solid knowledge of these markets and established business practices for serving them. Iomega and EMC form a powerful combination that will ultimately benefit customers.”

Jonathan Huberman, Chief Executive Officer, Iomega Corporation, said: “Today marks the beginning of an exciting new future for Iomega and our customers. Once the acquisition is completed, Iomega will be able to draw on EMC’s extensive capabilities to strengthen its business worldwide. EMC brings Iomega new opportunities to realise innovations even faster and translate them into new product features for Iomega’s extensive customer base. The respected Iomega brand, its many thousands of retail, direct marketing and distribution partners, and Iomega’s skilled employees will enable EMC to extend its reach into the high-growth consumer and small-business market segments.”

Iomega fits into the growing range of products that EMC is building for the consumer and small-business market. As long-standing partners, EMC and Iomega will continue to build on their existing foundation of technological integrations. Since 2004, Iomega has bundled EMC Retrospect data backup software with all external drives. In January 2008, EMC introduced the new EMC LifeLine software for the consumer, home office and small-business market segments. At the same time, Iomega announced its plans to integrate EMC LifeLine into its multi-drive network storage devices, which are to be unveiled this summer with the introduction of the next generation of StorCenter hard-drive products.

Further Links:

• Iomega
  EMC