Iomega To Consider EMC's Revised Bid - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

Iomega To Consider EMC's Revised Bid

Previously, EMC had offered $3.25 a share, or $178.1 million, for the storage device maker.

Iomega on Monday said it would consider EMC's revised takeover bid of $205.5 million.

EMC's latest offer for the consumer and small business storage hardware maker breaks down to $3.75 a share for Iomega's 54.8 million shares. The enterprise storage vendor had offered $3.25 a share, or $178.1 million.

In saying it would consider the new unsolicited offer, Iomega said the bid "would reasonably constitute a superior proposal" to an all-stock offer in December. Under that latter deal, Iomega would have acquired China's ExcelStor Group from shareholder Great Wall Technology.

The agreement would have led to a doubling of Iomega's outstanding shares and would have made Great Wall, ExcelStor's parent, a majority shareholder in Iomega. ExcelStor would have continued to operate as a wholly owned subsidiary of Iomega.

In agreeing to consider EMC's revised offer, Iomega said the two parties are far from sealing the deal. "While Iomega's board of directors has determined that the EMC acquisition proposal would reasonably constitute a superior proposal, it has not determined that a transaction with EMC is superior to the business combination contemplated under the ExcelStor purchase agreement as there are no agreed upon terms for a transaction with EMC," the company said in a statement.

If EMC is successful, the acquisition would expand the vendor's reach into the consumer and small business markets. Iomega makes backup drives, portable high drives, and storage devices attached to networked computers.

Iomega last year launched 1- and 2-terabyte network storage servers. The StorCenter Pro NAS 150d server sports disk drive hot-swap capability. It also is designed to offer users a backup option, along with a secure site for business files, photos, music, and multimedia content. The 1TB model sold for $799, and the 2 TB model for $1,499.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Becoming a Self-Taught Cybersecurity Pro
Jessica Davis, Senior Editor, Enterprise Apps,  6/9/2021
Ancestry's DevOps Strategy to Control Its CI/CD Pipeline
Joao-Pierre S. Ruth, Senior Writer,  6/4/2021
IT Leadership: 10 Ways to Unleash Enterprise Innovation
Lisa Morgan, Freelance Writer,  6/8/2021
Register for InformationWeek Newsletters
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll