Agreement reached on EMC deal; Company will buy Iomega for $213M.Byline: Mark Jewell Jewell is the name of several places in the United States:
BOSTON Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. - Data storage provider EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. Corp. said yesterday it would acquire Iomega (Iomega Corporation, San Diego, CA, www.iomega.com) A mass storage company founded in 1980 that offers a variety of optical, hard disk and proprietary disk storage devices. In the early 1980s, Iomega introduced the Bernoulli Box, which was the first high-capacity, removable disk for Corp. for $213 million, expanding EMC's offerings targeting small businesses and consumers. The price is a 20 percent increase over EMC's initial bid of $178 million, or $3.25 per share. Iomega, a San Diego-based storage company best known for the Zip drive See Zip disk. (hardware, storage) Zip Drive - A disk drive from Iomega Corporation which takes removable 100 megabyte hard disks. Both internal and external drives are manufactured, making the drive suitable for backup, mass storage or for moving files between computers. , had rejected that offer earlier this year, calling it inferior INFERIOR. One who in relation to another has less power and is below him; one who is bound to obey another. He who makes the law is the superior; he who is bound to obey it, the inferior. 1 Bouv. Inst. n. 8. to a proposed all-stock transaction that Iomega had reached in December with a stockholder. Hopkinton-based EMC came back with a $3.75-per-share offer totaling $206 million. Further talks led to yesterday's all-cash agreement at $3.85 per share, which is 5.8 percent higher than Iomega's closing price yesterday of $3.64. With Iomega's acceptance of EMC's bid, Iomega said it paid a termination fee termination fee The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. of $7.5 million to the shareholders in the canceled deal. Under that proposal, Iomega would have acquired China's ExcelStor Group from Great Wall Technology Co. Ltd., which is an Iomega shareholder and parent company of ExcelStor. Great Wall Technology would have held a majority stake in Iomega, and ExcelStor would have operated as a wholly owned Iomega subsidiary. EMC's storage services are largely geared toward corporate clients, and acquiring Iomega is expected to expand EMC's business with small businesses and consumers. "In addition to industry-leading products and a household consumer brand, Iomega brings to EMC a deep knowledge of and established business practices for servicing consumers and small businesses," said Joe Tucci, EMC's chairman, president and chief executive. Iomega, a 28-year-old company with about 300 employees, is best known for the more than 50 million Zip storage drives and 300 million Zip disks A 3.5" removable disk drive from Iomega. Zip disks come in 100MB, 250MB and 750MB varieties, with the latter introduced in 2002 using USB and FireWire interfaces. The 250MB drives, introduced in 1998, also read and write 100MB disks. it has sold since 1995. But with more advanced storage technologies replacing Zip disks, Zip products now make up a small share of Iomega's current storage business, which is focused on such successor technologies as the Rev backup drive, as well as storage accessed via computer networks. "Once the acquisition is final, Iomega will be able to fully leverage EMC's vast assets to grow our business globally," said Jonathan Huberman, Iomega's chief executive. EMC and Iomega announced their agreement after EMC's shares fell 6 cents to close at $14.84, and Iomega's shares fell 4 cents, to $3.64. The deal is expected to close by the end of June. EMC said the acquisition should not have any material impact on its full-year earnings. |
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