U.S.-based storage and peripheral developer Iomega has inked a deal to buy Chinese storage manufacturer ExelStor for about $315 million in an all-stock deal. ExcelStor developers and manufactures digital storage devices like hard drives, and has manufactured Iomega’s REV products since 2004 and has also manufactured selected Iomega external hard drive products, along with products for other vendors on an EOM basis. Iomega is touting the deal as one that converts a $230 million corporation into a $1 billion "global technology powerhouse" and enable the company to develop new products across several categories of consumer electronics.
"We are excited about our potential to combine the vast computer and consumer electronics product development and manufacturing capabilities of ExcelStor with our global brand and sales channels, our 27 years of experience building a successful company in the Americas and Europe, and also the opportunity for the combined company to partner with GWT and CEC’s other China-based affiliates to address worldwide markets," said Iomega CEO Jonathan Huberman in a statement.
Iomega will issue approximately 84 million shares of stock to cover the acquisition. After the deal closes, Huberman will stay on as CEO; ExcelStor CEO Eddie Lui will become Iomega’s Executive Chairman, and ExcelStor general manager/senior VP L.Y. Chan will become Iomega’s Chief Administrative Officer. Other ExcelStor execs will join Iomega’s board; for a period of at least two years after the merger, Iomega expects its board will have five directors nominated by ExcelStor and four directors nominated by Iomega.
ExcelStor has approximately 3,000 employees and is headquartered in Beijing, but runs its corporate affairs out of a holding company in the Cayman Islands.
