EMC said Tuesday that has acquired Iomega, best known for its Zip drives in the 1990s, for $213 million.
Under the terms of the deal EMC will pay $3.85 a share for Iomega, which closed at $3.64 on Tuesday. In a statement, EMC said:
The addition of Iomega's products, brand name, route to market and industry expertise will enhance EMC's reach and focus in the rapidly-growing consumer and small business markets.
The acquisition of Iomega is the latest in EMC's strategy to acquire companies that give it exposure to the consumer market. It recently acquired Berkeley Data Systems, parent of Mozy, an online data backup service that targeted small and home businesses.
Once the deal is completed, Iomega will be the core of a new EMC consumer and small business product division.