Syquest, the hard drive manufacturer which recently entered Chapter 11 bankruptcy protection, said it has found an unspecified buyer.
The company said it has signed a letter of intent and the sale will depend on the deal being finalised by 25 November. Iomega is known to be interested in buying Syquest's assets.
The transaction, if it succeeds, will mean the buyer will obtain patents and other intellectual properties, manufacturing equipment, finished product, work in process and raw materials.
Iomega's share price has shown a strong surge in the last few days.
The deal will include provision for products already sold through its channels or to end users.
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