This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

EMC Snatches Up Iomega

Updated from April 4



Data storage company EMC (EMC - Get Report) has agreed to acquire its smaller rival Iomega (IOM) for about $213 million in a bid to expand its reach in the consumer and small business markets.

EMC will tender its offer of $3.85 a share for the San Diego-based Iomega in the next two weeks. The revised bid represents a 18.5% premium above the $3.25-a-share offer that EMC made to Iomega last month.

EMC then upped the bid to $3.75 recently to re-enter negotiations.

The acquisition is expected to be completed in the second quarter of 2008, and will have no material impact on EMC's financial results for the fiscal, the company said.

Shares of EMC closed down 6 cents, or 0.4%, to $14.84 Tuesday. Iomega shares closed down 4 cents, or 1.1%, to $3.64. Iomega's stock rose 4.4%, or 16 cents, to $3.80 in extended trading on the news.

"Iomega brings to EMC a deep knowledge of and established business practices for servicing consumers and small businesses," said Joe Tucci, chairman, president and CEO of EMC in a statement.

Upon completion of the acquisition, Iomega will serve as the core of EMC's new consumer/small business products division led by Jonathan Huberman, CEO of Iomega. He will report to Joel Schwartz, senior vice president and general manager, EMC storage platforms division.

Know What You Own: EMC operates in the data storage industry, and some of the other stocks in its field include NetApp (NTAP - Get Report), Hewlett-Packard (HPQ - Get Report), IBM (IBM - Get Report) and Sun Microsystems (JAVA). These stocks were recently trading at $21.28, -1.71%, $45.92, -0.33%, $117.03, +0.65% and $15.31, +0.33% respectively. For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
EMC $26.78 0.00%
HPQ $33.41 0.00%
IBM $166.16 0.00%
NTAP $35.99 0.00%
AAPL $127.60 0.00%

Markets

DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs