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 finances.
Iomegais a maker of network-attached storage products, external hard-disk drives and removable storage.