Feeds

Iomega gobbles up SyQuest for $9.5 million

Storage giant nabs former rival's technology, but leaves its liabilities

  • alert
  • submit to reddit

Reducing security risks from open source software

Iomega has announced it has agreed to buy "certain assets" of its erstwhile storage rival SyQuest for a cash payment of $9.5 million. The deal will give Iomega SyQuest's technology and intellectual property plus its inventory and US fixed assets. The purchase is conditional on the transfer of Iomega of inventory and equipment from SyQuest's Malaysian subsidiary. However, the agreement does not transfer any of SyQuest's liabilities or material obligations, such as warranties and customer support, or any debts owed to SyQuest by third partes. All these will remain the responsibility of SyQuest itself. The deal follows SyQuest's collapse and filing for Chapter 11 protection in November 1998. Soon after, SyQuest lawyers announced it was pursuing a buyer, and Iomega was widely tipped as the most likely purchaser. Last week, SyQuest's Web site became active again to provide customer support and technical information (see SyQuest re-emerges from oblivion). The company's lawyers said a deal was in the offing and that it hoped to get SyQyuest up and running normally very shortly. While the deal will effectively see the end of SyQuest as a force in the storage market -- with no intellectual property or fixed assets, there's not a lot it can do -- it is good news for the many owners of malfunctioning SyQuest kit, much of it held at the company's premises for repair. With a $9.5 million cash injection, what's left of the company should be able to get working drives back to their owners. However, the fact that Iomega was in a position to dictate terms -- ie. we want all the important stuff but none of the liabilities -- suggests SyQuest was in a parlous state indeed. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.