Updated from April 4

Data storage company EMC ( EMC) 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), Hewlett-Packard ( HPQ), IBM ( IBM) 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.

More from Technology

Deconstructed: Why Micron's Stock Has Exploded 11% in 13 Hours

Deconstructed: Why Micron's Stock Has Exploded 11% in 13 Hours

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Pegasystems Founder Explains Why He Has One of the Hottest Tech Stocks Around

Experts Break Down GDPR Risks for Investors

Experts Break Down GDPR Risks for Investors

4 Billionaires Trying to Make Space Travel a Reality

4 Billionaires Trying to Make Space Travel a Reality

Facebook CEO Mark Zuckerberg Deflects Tough Questions From European Parliament

Facebook CEO Mark Zuckerberg Deflects Tough Questions From European Parliament