EMC completes Iomega acquisition
Completion of tender signals final steps in $213 million deal to buy external storage vendor
EMC has successfully completed its tender offer for Iomega corporation, and will now be able to finalize its acquisition of the external storage vendor.
The deal, which values Iomega at $213 million, is expected to be completed within a few working days, according to an EMC statement.
Iomega will now operate as a direct wholly owned subsidiary of EMC. At EMC World last month, EMC CEO Joe Tucci said that EMC plans to inject more capital into Iomega to help build it both as a hardware proposition and as a consumer and SOHO play to offer both hardware and online storage services.
The purchase of acquisition marks EMC's first move into consumer hardware, although it is already offering online storage services through Mozy, another recent acquisition.
Tucci said the company was keen to build a consumer brand, but would not rush into it: "We are planning to walk into it. This year we are probably not going to spend tens of millions of dollars to do that, but you will see us begin."