Iomega to buy ExcelStor Group

Storage firm Iomega today announced that it has entered into a definitive share purchase agreement to acquire ExcelStor Group.

ExcelStor designs, develops, manufactures and provides digital storage technologies. Its principal product lines include hard disk drives (HDD), security storage and external storage. ExcelStor currently manufactures some of Iomega's external HDD products and has manufactured Iomega products since 2004.

ExcelStor is a subsidiary of Great Wall Technology Company Limited, a publicly traded company on the Hong Kong Stock Exchange, headquartered in Beijing, China. In turn GWT is an indirect subsidiary of China Electronics Corporation, a PRC Government-owned information technology conglomerate that controls more than 60 second-level subsidiary companies primarily engaged in the areas of computer and component manufacturing, integrated circuit design and manufacturing, software development and systems integration, telecommunications, consumer electronics design and manufacturing.

ExcelStor produces more than 20 million HDD-based devices per year. For its fiscal year ended December 31, 2006, the firm had revenue of $707.1 million.

Iomega will issue approximately 84 million shares of common stock in Iomega in exchange for all outstanding ExcelStor common shares. The boards of directors of both Iomega and ExcelStor have unanimously approved the share purchase agreement.