Published in News
EMC takeover offer to Iomega rejected
by David Stellmack on11 March 2008
Not really a surprise
Over the weekend various sources have indicated that Iomega rejected a takeover bid from EMC. Iomega is in the process of finishing its takeover of the Chinese company, ExcelStor, who is the Iomega OEM for many of their products. Iomega is still in the process of preparing all of the filings necessary to get this deal done.
The Iomega connection to EMC perhaps comes more from the company’s decision to deploy EMC’s LifeLine multi-drive network storage software in an OEM version with Iomega’s technology during the first half of this year. This news came to light in an announcement from Iomega back in January of this year.
Iomega is currently hot off their announcement of a new 120GB REV drive announcement at CeBIT that almost doubles the current 70GB version of the REV drive. The REV has proved to be quite a capable cost effective solution for backups that has been adopted by many small and medium sized business clients.
Iomega’s decision to reject EMC’s takeover bid could also be a move to help drive up the price that EMC must pay to acquire Iomega. The Iomega brand name is very good at the retail level and has excellent recognition with consumers. Iomega has been expanding its offerings to include external hard drives, network attached storage devices, as well traditional removable storage solutions targeted at consumers.
If EMC were to acquire Iomega, it would give the company a foothold in the consumer and SOHO market spaces, which are pretty much the only areas where EMC is not a major player. Some analysts have suggested that bringing Iomega into the EMC fold could make the company a major player at the retail level in the home storage market using the Iomega brand and leveraging the software and technology from EMC.