Iomega Announces Termination of Share Purchase Agreement With ExcelStor Entities
April 08 2008 - 4:21PM
PR Newswire (US)
SAN DIEGO, April 8, 2008 /PRNewswire-FirstCall/ -- As previously
disclosed, Iomega Corporation (NYSE:IOM) had entered into a share
purchase agreement with ExcelStor Great Wall Technology Limited, a
Cayman Islands company ("ESGWT"), Shenzhen ExcelStor Technology
Limited, a PRC company ("SETL" and, together with ESGWT,
"ExcelStor"), Great Wall Technology Company Limited, a People's
Republic of China company ("GWT"), ExcelStor Group Limited, a
Cayman Islands company ("EGL"), and ExcelStor Holdings Limited, a
British Virgin Islands company ("EHL" and, together with GWT and
EGL, the "Selling Shareholders"), on December 12, 2007 (the
"Purchase Agreement"). Effective on April 8, 2008, the board of
directors of Iomega terminated the Purchase Agreement. In
accordance with the terms of the Purchase Agreement, Iomega has
paid the Selling Shareholders a termination fee of $7.5 million.
The Purchase Agreement between Iomega, ExcelStor, and the Selling
Shareholders is no longer in force and effect. Concurrent with the
termination of the Purchase Agreement, and as separately announced
today, Iomega entered into an agreement and plan of merger (the
"Merger Agreement") with EMC Corporation (NYSE:EMC). EMC
Corporation ("EMC") will commence a cash tender offer to purchase
the outstanding shares of Iomega's common stock at a price per
share of $3.85 in cash, without interest. Pursuant to the Merger
Agreement, following the completion of the tender offer, a merger
subsidiary of EMC will merge into Iomega leaving Iomega as the
surviving entity and a wholly-owned subsidiary of EMC. 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. Today, Iomega's product portfolio
includes industry leading network attached storage products,
external hard drives, and its own award-winning removable storage
technology, the REV(R) Backup Drive. OfficeScreen(R), Iomega's
managed security services, which are available in the U.S. and
select markets in Europe, provide enterprise quality perimeter
security and secure remote network access for SMBs, which help
protect small enterprises from data theft and liability. 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.
Special Note Regarding Forward-Looking Statements Statements
contained in this release that are not purely historical are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
about a future tender offer by EMC for Iomega stock. All such
statements are based upon information available to us as of April
8, 2008, and we disclaim any intention or obligation to update any
such statements. Actual results could differ materially from
current expectations, based upon various factors including
conditions to closing and rights of EMC to terminate the pending
EMC transaction, the risk of any material adverse change in
Iomega's business prior to EMC consummating its purchase, and the
right of shareholders to accept or reject EMC's proposals. For a
list and description of risks and uncertainties associated with the
Company's business, see the Company's reports filed from time to
time by the Company with the U.S. Securities and Exchange
Commission, including the Company's most recent Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q. In connection with
the proposed transaction with EMC, Iomega intends to file a
Schedule 14d-9 with the SEC. Investors and security holders are
urged to read the Schedule 14d-9 carefully when it becomes
available because it will contain important information about
Iomega, EMC and the proposed transaction. The Schedule 14d-9 and
other relevant materials (when they become available), and any
other documents filed with the SEC, may be obtained free of charge
at the SEC's website http://www.sec.gov/. In addition, investors
and security holders may obtain a free copy of the other documents
filed by Iomega by directing a written request, as appropriate, to
Iomega at Attention: Corporate Secretary, 10955 Vista Sorrento
Parkway, San Diego, CA 92130. Iomega's security holders are urged
to read the Schedule 14d-9 and the other relevant materials when
they become available before making any voting decision with
respect to the proposed transaction. Information about the
executive officers and directors of Iomega and their ownership of
Iomega common stock is set forth in the proxy statement for
Iomega's 2007 Annual Meeting of Stockholders, which was filed with
the SEC on April 13, 2007. Certain directors and executive officers
of Iomega may have direct or indirect interests in the transaction
due to securities holdings, pre-existing or future indemnification
arrangements, vesting of options, or rights to severance payments
if their employment is terminated following the transaction.
Additional information regarding Iomega and EMC and the interests
of their respective executive officers and directors in the
transaction, as well as any director nominees, will be contained in
the Schedule 14d-9 regarding the transaction that will be filed by
Iomega with the SEC. Media, please contact: Chris Romoser, Iomega
Corporation, (858) 314-7148, Analyst/Investors, please contact:
Preston Romm, Iomega Corporation, (858) 314-7188 DATASOURCE: Iomega
Corporation CONTACT: Media, Chris Romoser, +1-858-314-7148, , or
Analyst|Investors, Preston Romm, +1-858-314-7188, both of Iomega
Corporation Web site: http://www.iomega.com/
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