EMC begins tender offer for Iomega shares

Data storage systems maker EMC Corp. said today that it will begin a tender offer to acquire all outstanding shares of Iomega Corp., a San Diego-based storage company best known for the Zip drive.

EMC of Hopkinton is offering $3.85 per share in cash to Iomega shareholders. Shares of Iomega closed at $3.82 yesterday.

The tender offer will end at midnight on May 21.

In April, EMC agreed to acquire Iomega for $213 million in a move to expand its offerings targeting small businesses and consumers. The price represented a 20 percent increase over EMC's initial bid of $178 million, or $3.25 per share.

The companies received antitrust approval for the deal on Tuesday. (AP)