Storage firm EMC has finally secured a deal to acquire Iomega for a cash tender offer of $3.85 per outstanding share, equating to around $213m.

Last month EMC offered to purchase all 54.8 million outstanding shares of Iomega stock at $3.25 per share, however this offer was rejected by Iomega.

"EMC brings to Iomega a new opportunity for accelerated innovation that will translate into new product capabilities for Iomega's extensive customer base," said Jonathan Huberman, chief executive officer of Iomega.

EMC has said it plans to use the acquisition to help expand its reach into the consumer and small business storage market with the Iomega brand serving as the core of EMC's new Consumer/Small Business Products Division.

"Iomega will play a key role in EMC's strategy to expand our information storage and management capabilities deeper into the high-growth consumer and small business markets," explained Joe Tucci, chairman, president and chief executive officer of EMC.

EMC intends to commence the tender offer in the next two weeks and, providing there are no problems, the deal is expected to be completed in the second quarter of 2008.

The acquisition is expected to have no material impact on EMC's financial results for the full 2008 fiscal year.