EMC to buy portable storage vendor Iomega for $213M

Iomega is best known for its popular Zip and Rev storage drives

EMC Corp. has agreed to buy Iomega Corp. for $213 million in cash, the companies announced yesterday. The deal expands EMC's reach into the fast-growing consumer and small business markets.

San Diego-based Iomega is best known for its popular Zip and Rev storage drives. It also offers storage appliances and managed security services.

EMC said Iomega's well-known brand and its knowledge of the consumer market will help it to expand in that area. Iomega will form the core of a new consumer and small-business products division at EMC. That division will also sell EMC's Retrospect backup software and LifeLine storage software.

EMC expressed an interest in acquiring Iomega in mid-March for $3.25 per share and later sweetened the offer to $3.75 per share. On Tuesday, it said it had agreed to buy the company for $3.85 per share.

EMC said it expects the deal to close in the second quarter, subject to the usual closing conditions and regulatory approvals.

Copyright © 2008 IDG Communications, Inc.

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