Jeff, here is the news on Iomega buyout of Syquest intellectual properties and some other valuable assets... IomegaQuest... Sigh!
Hope this is received well by the Street... Mel
Wednesday January 13, 8:30 am Eastern Time
Company Press Release
Iomega Agrees to Purchase Select Assets of Syquest Technology, Inc.
ROY, Utah--(BUSINESS WIRE)--Jan. 13, 1999--Iomega Corporation (NYSE:IOM - news) today announced that it has entered into a definitive agreement to purchase certain assets of SyQuest Technology, Inc., including all of its intellectual property, and its inventory and fixed assets in the U.S., for $9.5 million in cash, subject to certain closing conditions and adjustments.
Provided all conditions to closing are met, Iomega anticipates a first quarter 1999 closing. The proposed transaction will have no effect on Iomega's fourth quarter 1998 financial results.
''We have taken a close look at SyQuest's assets, particularly its intellectual property, and concluded that they can add value to our business and our shareholders,'' said Jodie K. Glore, president and chief executive officer, Iomega Corporation. ''We operate in a highly competitive environment and we believe this asset purchase will be a worthwhile investment and will enhance our future products.''
Iomega will not assume any material obligations or liabilities of SyQuest. Warranty service and customer support obligations for products sold by SyQuest will remain the responsibility of SyQuest. SyQuest announced that it has commenced limited sales and support operations, including online technical support via the World Wide Web, warranty returns and product service operations.
SyQuest filed a motion on January 12, 1999 in the United States Bankruptcy Court seeking approval of the asset sale to Iomega. This approval is necessary for the proposed transaction to close. Other conditions to closing include Iomega's acquisition of the inventory and equipment assets of SyQuest's subsidiary in Malaysia, for additional consideration.
The assets to be purchased by Iomega from SyQuest Technology, Inc. under the agreement announced today do not include SyQuest's accounts receivable, its claims against third parties, such as claims for tax or other refunds, or the assets of SyQuest's subsidiary in Malaysia.
SyQuest Malaysia's assets are being offered for sale separately by a Receiver and Manager appointed in Malaysia. Iomega intends to submit an offer to purchase SyQuest Malaysia's equipment and inventory at a price substantially below that being paid for the U.S. assets, since SyQuest has represented to Iomega that the assets to be purchased under the U.S. agreement include all material intellectual property rights.
As part of the agreement announced today, Iomega would release SyQuest and SyQuest would release Iomega from all claims in connection with patent and trademark infringement litigation pending between the parties in Delaware and in Paris, France. The trial on the pending Delaware litigation had been scheduled for April 1999. That trial date has been delayed as a result of SyQuest's filing of a voluntary petition in the United States Bankruptcy Court in November 1998.
About Iomega
Iomega Corporation (NYSE:IOM - news) manufactures and markets the award-winning Zip®, Jaz®, Clik!™ and Ditto® drives and disks that help people to organize, manage, create, exchange and share their important information. Used in homes, businesses, government, education and by creative professionals everywhere, Iomega storage solutions are the enabling technologies preferred by millions. The Company can be reached at 1-800-MY-STUFF (800-697-8833), or on the Web at iomega.com.
Special note: The statements contained in this release relating to Iomega's proposed purchase of certain assets from SyQuest, the value of such assets to Iomega, including Iomega's belief that such assets will enhance Iomega's future products, Iomega's anticipation that the transaction will close in the first quarter of 1999, and its intent to submit a bid for SyQuest's Malaysian assets are forward-looking statements. There are a number of important factors that could cause actual results to differ materially from those suggested by such forward-looking statements. These include, among others, the satisfaction of various conditions to the closing of the proposed transaction including the possible rejection by the United States Bankruptcy Court or the Malaysian Receiver and Manager of the proposed purchase by Iomega, and Iomega's ability to incorporate certain intellectual property assets acquired in the transaction into its current and/or future products.
Note to Editors: Iomega, Zip, Jaz, Ditto, and the stylized ''i'' logo are registered trademarks of, and Clik! is a trademark of, Iomega Corporation. For maximum reliability, use only genuine Zip disks featuring the genuine Zip symbol in your Zip drive.
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Contact:
Iomega Corp.
Susan Stillings, 801/332-4668 (Media)
stilling@iomega.com
Tyler Thatcher, 801/332-4362 (Investors)
thatcher@iomega.com
or
Abernathy MacGregor Frank
Jason Thompson, 212/371-5999
jft@abmac.com |
