Iomega said on Tuesday
it had accepted an
increased cash takeover offer of $213 million from EMC, a
leader in information infrastructure solutions.
The deal allows EMC, the world's largest data-storage
provider, to expand in the consumer and small business
EMC will pay $3.85 per Iomega share.
Iomega had rejected EMC's initial offer and then began
talks when the larger company sweetened its bid to $3.75 a
share, or $205.5 million, in March.
Last December, Iomega had signed a deal to buy ExcelStor, a
unit of Great Wall Technology, in a stock swap valued at
the time at $306 million. That deal would have made Great
Wall its largest shareholder.
Iomega said on Tuesday it paid $7.5 million to terminate
the ExcelStor deal in favor of EMC's offer.
Iomega said on March 17 it was prepared to enter talks with
EMC, after it sweetened its offer to $3.75 a share.
EMC said the acquisition, expected to be completed in the
second quarter, would have no material impact on EMC
Iomegais a maker of network-attached storage products,
external hard-disk drives and removable storage.