Skip to main content

EMC grabs Zip manufacturer Iomega for $213 million

Falling star Iomega has been purchased by Storage giant EMC for $213 million, a month after EMC initially started acquisition talks with Iomega.

The first proposal valued Iomega at only $178 million which the storage firm dismissed, saying that it was not "superior" to the merger talks it was holding at the time with Chinese storage specialist Excelstor.

Iomega agreed to be bought by EMC at $3.85 per share, a far cry from the good days of March 1996 when the stock was selling at more than $110.

Commenting on the acquisition, Iomega CEO Jonathan Huberman told CNet (opens in new tab) that the agreement will allow Iomega to grow more.

He added : "Our markets are adjacent, but not overlapping, We have strong brand and channel presence in business and consumer (markets), but what we do lack is scale."

Iomega brand will allow EMC to get into the consumer and small business markets relatively quickly since Iomega has been a fairly recognised name ever since it introduce the Iomega ZIP in 1994.

Already there are speculations as whether (a) EMC could seek a potential partnership with Excelstor, which would provide it with a foothold in China - even if Iomega has already terminated the deal with it (b) how Iomega and Mozy may be integrated.

Iomega has been famous for its range of external storage devices like the Rev, the Jazz and the Zip whose success came to an abrupt end as falling CD prices and USB drives became popular.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.