EMC has agreed to buy Iomega for US$213 million in cash, expanding EMC's reach into the fast-growing consumer and small business markets, the companies announced Tuesday.
EMC said Iomega's well-known brand and its knowledge of the consumer market will help it to expand in that area. Iomega will form the core of a new consumer and small-business products division at EMC, which will also sell EMC's Retrospect backup software and LifeLine storage software.
Iomega is best known for its popular Zip and Rev storage drives. It also offers storage appliances and managed security services.
EMC expressed an interest in acquiring Iomega in mid-March for $3.25 per share. It later sweetened the offer to $3.75 per share, and on Tuesday it said it had agreed to buy the company for $3.85 per share.
EMC said it expects the deal to close in the second quarter, subject to the usual closing conditions and regulatory approvals.