Filed under: Deals

A month after rejecting a takeover proposal from EMC Corp. (NASDAQ: EMC), storage vendor Iomega Corp. (NYSE: IOM) Tuesday afternoon said it agreed to a sweetened offer from its larger rival.

The companies said EMC would pay $3.85 per share for struggling Iomega, or $213 million, in a cash tender offer that would kick off within two weeks. The announcement comes three weeks after Iomega deemed EMC’s offer superior to an earlier argreement it had struck to merge with ExcelStor Great Wall Technology Ltd., a subsidiary of Beijing’s Great Wall Technology Co. Ltd.

Iomega, maker of the Zip drive, on Tuesday said it has killed the ExelStor deal and paid a $7.5 million termination fee. EMC’s success follows a failed earlier attempt to buy Iomega for $178 million. Iomega will become the core of EMC’s small business and consumer products division, led by Iomega CEO Jonathan Huberman.

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This entry was posted on Friday, April 25th, 2008 at 9:12 pm and is filed under Engagements and Deals News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.