SAN DIEGO -- As previously disclosed, Iomega Corporation (NYSE: IOM) had entered into a share purchase agreement with ExcelStor Great Wall Technology Limited, a Cayman Islands company ("ESGWT"), Shenzhen ExcelStor Technology Limited, a PRC company ("SETL" and, together with ESGWT, "ExcelStor"), Great Wall Technology Company Limited, a People's Republic of China company ("GWT"), ExcelStor Group Limited, a Cayman Islands company ("EGL"), and ExcelStor Holdings Limited, a British Virgin Islands company ("EHL" and, together with GWT and EGL, the "Selling Shareholders"), on December 12, 2007 (the "Purchase Agreement").
The Iomega REV 120GB Backup Drive is now available worldwide as an external USB 2.0 model for $499.99, and as an internal SATA interface model for $479.99. Every REV 120GB Backup Drive comes complete with one REV 120GB disk and EMC award-winning Retrospect® Express software for automatic backup and disaster recovery. Iomega also offers REV 120GB Server Kit models that include one REV 120GB drive and five REV 120GB disks along with CA's BrightStor® ArcServe® Backup software with disaster recovery.
Effective on April 8, 2008, the board of directors of Iomega terminated the Purchase Agreement. In accordance with the terms of the Purchase Agreement, Iomega has paid the Selling Shareholders a termination fee of $7.5 million. The Purchase Agreement between Iomega, ExcelStor, and the Selling Shareholders is no longer in force and effect.
Concurrent with the termination of the Purchase Agreement, and as separately announced today, Iomega entered into an agreement and plan of merger (the "Merger Agreement") with EMC Corporation (NYSE: EMC). EMC Corporation ("EMC") will commence a cash tender offer to purchase the outstanding shares of Iomega's common stock at a price per share of $3.85 in cash, without interest. Pursuant to the Merger Agreement, following the completion of the tender offer, a merger subsidiary of EMC will merge into Iomega leaving Iomega as the surviving entity and a wholly-owned subsidiary of EMC.