14 DAY TRIAL // Iomega has announced the purchasing of hard-disk manufacturer ExcelStor Great Wall Technology. ExcelStor designs and develops advanced digital storage technologies such as hard disk drives, security storage as well as external storage devices. The two companies are working together since 2004, with ExcelStor manufacturing some of Iomega's HDD and REV products.
"We expect the transaction to be accretive to our bottom line, and the combined company is expected to have more than $1 billion in annual revenue for 2007 and approximately 3000 employees worldwide. 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 Jonathan Huberman, chief executive of Iomega.
Iomega will replace the ExcelStor shares that are on the market with 84 million shares of common stock in Iomega. The boards of directors have reached an agreement on the share distribution plan. When the transaction is finished, the GWT group will hold approximately 43% of Iomega's common stock and will become the major Iomega shareholder.
"We expect to be an integral part of the CEC family and therefore accelerate our growth in our core Americas and European markets and obtain significantly greater access to the China market. Our ultimate goal is to build a thriving global leader in computer peripherals and other consumer electronics products", added Mr. Huberman.
The transaction is still in progress and is subject to miscellaneous closing conditions, such as the accept of the Popular Republic of China government, as well as other authorities. It is alleged to reach completion in about six months, but until then, the companies will operate independently.