EMC To Acquire Iomega
April 08 2008 - 4:17PM
PR Newswire (US)
Advances Support for the Rapidly-growing Information Storage Needs
of Individual Consumers and Small Businesses HOPKINTON, Mass. and
SAN DIEGO, April 8, 2008 /PRNewswire/ -- EMC Corporation
(NYSE:EMC), the world leader in information infrastructure
solutions, and Iomega Corporation (NYSE:IOM), a global leader in
data storage and protection for consumers and small businesses,
today announced a definitive agreement for EMC to acquire San
Diego-based Iomega in a cash tender offer of $3.85 per outstanding
share, or approximately $213 million. The addition of Iomega's
products, brand name, route to market and industry expertise will
enhance EMC's reach and focus in the rapidly-growing consumer and
small business markets. EMC intends to commence the tender offer in
the next two weeks, with completion of the tender offer expected in
the second quarter of 2008, subject to customary closing conditions
and regulatory approvals. The acquisition is expected to have no
material impact on EMC financial results for the full 2008 fiscal
year. Joe Tucci, EMC Chairman, President and CEO, said, "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. 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. Iomega and
EMC represent a powerful combination that ultimately will benefit
these customers through the protection, security and simplified
management of their rapidly growing information." Jonathan
Huberman, Chief Executive Officer, Iomega Corporation, said, "Today
begins an exciting new future for Iomega and our customers. Once
the acquisition is final, Iomega will be able to fully leverage
EMC's vast assets to grow our business globally. EMC brings to
Iomega a new opportunity for accelerated innovation that will
translate into new product capabilities for Iomega's extensive
customer base. Through the renowned Iomega brand; thousands of
retail, direct marketing and distribution channel partners; and
Iomega's talented people, EMC will be able to extend its reach into
the high-growth consumer and small business market segments." Upon
completion of the acquisition, Iomega will serve as the core of
EMC's new Consumer/Small Business Products Division. The new
division (led by Jonathan Huberman and reporting to Joel Schwartz,
Senior Vice President and General Manager, EMC Storage Platforms)
will also include EMC Retrospect(R) and EMC LifeLine(TM) software.
EMC plans to build the division around the strength of the Iomega
organization, brand, products and partner ecosystem. Iomega adds to
the growing list of product offerings EMC is amassing for the
consumer and small business markets. As long-standing partners, EMC
and Iomega will continue to build upon their existing foundation of
technology integrations. Since 2004, Iomega has been packaging and
selling EMC Retrospect backup software with all its external disk
drives. In January 2008, EMC announced the new EMC LifeLine
software for the consumer, home office and small business markets.
Simultaneously, Iomega announced plans to embed EMC LifeLine into
its multi-drive network storage products, which are expected this
summer with the launch of its next-generation StorCenter Network
Hard Drive products. About Iomega Iomega Corporation, headquartered
in San Diego, is a worldwide leader in innovative storage and
network security solutions for small and mid-sized businesses,
consumers and others. The Company has sold more than 400 million
digital storage drives and disks since its inception in 1980. To
learn about all of Iomega's digital storage products and managed
services solutions, please go to the Web at http://www.iomega.com/.
Resellers can visit Iomega at http://www.iomega.com/ipartner. About
EMC EMC Corporation (NYSE:EMC) is the world's leading developer and
provider of information infrastructure technology and solutions
that enable organizations of all sizes to transform the way they
compete and create value from their information. Information about
EMC's products and services can be found at http://www.emc.com/.
EMC and Retrospect are registered trademarks and LifeLine is a
trademark of EMC Corporation. Iomega is a registered trademark of
Iomega Corporation. All other trademarks are the property of their
respective owners. This release contains "forward-looking
statements" as defined under the Federal Securities Laws. Actual
results could differ materially from those projected in the
forward-looking statements as a result of certain risk factors,
including but not limited to: (i) adverse changes in general
economic or market conditions; (ii) delays or reductions in
information technology spending; (iii) our ability to protect our
proprietary technology; (iv) risks associated with managing the
growth of our business, including risks associated with
acquisitions and investments and the challenges and costs of
integration, restructuring and achieving anticipated synergies; (v)
fluctuations in VMware, Inc.'s operating results and risks
associated with trading of VMware stock; (vi) competitive factors,
including but not limited to pricing pressures and new product
introductions; (vii) the relative and varying rates of product
price and component cost declines and the volume and mixture of
product and services revenues; (viii) component and product quality
and availability; (ix) the transition to new products, the
uncertainty of customer acceptance of new product offerings and
rapid technological and market change; (x) insufficient, excess or
obsolete inventory; (xi) war or acts of terrorism; (xii) the
ability to attract and retain highly qualified employees; (xiii)
fluctuating currency exchange rates; and (xiv) other one- time
events and other important factors disclosed previously and from
time to time in EMC's filings with the U.S. Securities and Exchange
Commission. EMC disclaims any obligation to update any such
forward-looking statements after the date of this release. The
tender offer described in this announcement has not yet commenced.
This announcement is neither an offer to purchase nor a
solicitation of an offer to sell any shares of Iomega. The
solicitation and the offer to buy shares of Iomega common stock
will be made pursuant to an offer to purchase and related materials
that EMC and its wholly owned subsidiary intend to file with the
U.S. Securities and Exchange Commission. At the time the tender
offer is commenced, EMC and its wholly owned subsidiary intend to
file a Tender Offer Statement on Schedule TO containing an offer to
purchase, forms of letters of transmittal and other documents
relating to the tender offer, and Iomega intends to file a
Solicitation/Recommendation Statement on Schedule 14D-9 with
respect to the tender offer. EMC, its wholly owned subsidiary and
Iomega intend to mail these documents to the stockholders of
Iomega. These documents will contain important information about
the tender offer and stockholders of Iomega are urged to read them
carefully when they become available. Investors and stockholders of
Iomega will be able to obtain a free copy of these documents (when
they become available) and other documents filed by Iomega or
Purchaser with the SEC at the website maintained by the SEC at
http://www.sec.gov/. In addition, the tender offer statement and
related materials may be obtained for free (when they become
available) by directing such requests to EMC Corporation at 176
South Street, Attention: Office of the General Counsel, Hopkinton,
MA 01748. Investors and stockholders may obtain a free copy of the
solicitation/recommendation statement and such other documents
(when they become available) from Iomega by directing requests to
Iomega at 10955 Vista Sorrento Parkway, Attention: Corporate
Secretary and General Counsel, San Diego, CA 92103. DATASOURCE: EMC
Corporation CONTACT: Dave Farmer of EMC Corporation,
+1-508-293-7206, ; or Chris Romoser of Iomega, +1-858-314-7148, Web
site: http://www.emc.com/
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