| China takes control of Iomega |
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| Written by Stephen Withers | |
| Friday, 14 December 2007 | |
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ExcelStor is currently a subsidiary of Great Wall Technology, which is in turn a subsidiary of state-owned China Electronics. In return for ExelStor, Great Wall will receive a 60 percent stake in Iomega. The deal, worth more than $US300 million, is subject to regulatory and shareholder approval. If it goes through, 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. L.Y. Chan, currently senior vice president and general manager of ExcelStor, will become chief administrative officer of Iomega. Stephen David, currently chairman of Iomega, will remain on the Board and will become the lead independent director. Zhaoxiong Chen, president of China Electronics, and Lu Ming, president of Great Wall, will join the board. The plan is that for at least two years after closing, the board will comprise five directors nominated by ExcelStor or its owners, and four nominated by Iomega. Iomega's worldwide corporate headquarters will remain in San Diego. In addition to providing Iomega with its own manufacturing capability, the merger will give the company a foothold in the China market, while providing Great Wall with a conduit into the US and Europe. The expanded company will have around 3000 employees and revenue of more than $US1 billion for 2007.
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