EMC to acquire Iomega
Acquisition hungry storage giant makes second purchase in a week
Acquisitive storage infrastructure giant EMC has devoured consumer and small
business storage supplier Iomega in a deal valued at around $213m.
Iomega’s products, brand name, route to market and industry expertise will be
folded into the EMC corporate brand, in a bid to extend EMC's reach into the
fast growing consumer and small business markets.
EMC will tender in two weeks, with completion of the offer expected in the
second quarter of 2008, if closing conditions and regulatory approvals are met.
Iomega has a key role in EMC’s strategy for the consumer and small business
markets, Joe Tucci, EMC's chairman, told CRN. But it is not just about the brand,
he insisted. "Iomega brings a deep knowledge of business practices for servicing
consumers and small businesses. We are a powerful combination that offers
customers, protection, security and simpler management for their mushrooming
information.”
This is exciting news for Iomega customers, Jonathan Huberman, Iomega's chief executive, said.
"Today begins an exciting new future for Iomega and our customers, who can fully leverage EMC’s vast assets to grow our business globally. This will enable accelerated innovation, leading to new product potential for Iomega’s extensive customer base," he claimed.
On completion of the acquisition, Iomega will serve as the core of EMC’s new
consumer/small business products division. The new division, led by Huberman and
reporting to Joel Schwartz, senior vice president at EMC Storage Platforms, will also include EMC Retrospect and EMC LifeLinesoftware.