Iomega Corp. (IOM) announced that it agreed to acquire ExcelStor Great Wall Technology Limited, and Shenzhen ExcelStor Technology Limited, a PRC company.
Iomega will issue about 84 million shares of common stock in Iomega in exchange for all outstanding ExcelStor common shares, representing in the aggregate 60% of the fully diluted capitalization of Iomega, to be measured as of the closing date.
ExcelStor is a subsidiary of Great Wall Technology Company Limited or "GWT". GWT is an indirect subsidiary of China Electronics Corporation or "CEC".
Upon closing, Jonathan Huberman will continue to serve as CEO, Thomas Kampfer will continue as President and COO, and Preston Romm will continue as CFO. Eddie Lui, currently CEO of ExcelStor, will become Executive Chairman of Iomega.
The company expects the transaction to be accretive to its bottom line.
The transaction is expected to close in about six months, or mid-2008. Until the transaction is completed, both companies will continue to operate their businesses independently. Following the acquisition, it is intended that ExcelStor will operate as a wholly-owned subsidiary of Iomega.
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