By Lisa Kerner
Charlotte, N.C., April 8 - EMC Corp. agreed to acquire Iomega Corp. in a $3.85-per-share cash tender offer, EMC announced on Tuesday. The deal is valued at approximately $213 million.
EMC said it intends to begin the tender offer within the next two weeks.
The transaction's close is subject to customary closing conditions and regulatory approvals, an EMC news release stated.
"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," EMC chairman, president and chief executive officer Joe Tucci said in the release.
Once the acquisition is complete, Iomega will serve as the core of EMC's new consumer/small business products division led by Jonathan Huberman.
In connection with the proposed merger, Iomega's board of directors terminated its share purchase agreement with ExcelStor Great Wall Technology Ltd., Shenzhen ExcelStor Technology Ltd., Great Wall Technology Co. Ltd., ExcelStor Group Ltd. and ExcelStor Holdings Ltd.
The company paid a $7.5 million termination fee, an Iomega news release said.
It was previously announced that on Dec. 12, Iomega proposed acquiring 100% of the issued and outstanding equity interests in ExcelStor, from the selling shareholders, in exchange for a number of shares of Iomega's common stock representing approximately 60% of the issued and outstanding capital stock of Iomega.
In March, EMC acquired Document Sciences Corp. for $85.5 million, or $14.75 per share.
EMC, located in Hopkinton, Mass., develops and supports information infrastructure technology and solutions.
Iomega, based in San Diego, provides storage and network security solutions for businesses and consumers.
| Acquirer: | EMC Corp.
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| Target: | Iomega Corp.
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| Announcement date: | April 8
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| Transaction total: | $213 million
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| Price per share: | $3.85
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| Expected closing: | Upon approvals
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| Stock price of target: | NYSE: IOM: $3.68 on April 7
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