Iomega Announces Definitive Agreement to Acquire Managed Services Provider CSCI, Inc.
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Purchase of OfficeScreen Brings Iomega-Branded Enterprise-Level Network Management and Security To Small And Medium Businesses
SAN DIEGO, July 11, 2006 – Iomega Corporation (NYSE: IOM), a global leader in data protection, today announced that it has reached a definitive agreement to acquire CSCI, Inc., a San Diego-based managed services and outsourced IT company. CSCI is the 2006 winner of the Juniper Networks, Inc. “Managed Services Provider of the Year” award and the creator of OfficeScreen ® services, a suite of managed virtual private networks (VPNs) that provide small to medium-sized businesses with secure wide-area networks that efficiently and economically link offices and remote workers.
“With the addition of OfficeScreen, Iomega is taking the first step toward becoming a managed services company,” said Jonathan Huberman, Chief Executive Officer, Iomega Corporation. “Small businesses need simple, secure, easy-to-use networks from a company they trust. The debut of Iomega OfficeScreen services will expand on Iomega’s 25-year history of dependable data security products for SMBs and position the company to capitalize on the growing managed services market.”
Currently hundreds of small and medium-sized businesses in the U.S. utilize OfficeScreen as a secure, outsourced network security and VPN service that does not require upfront hardware expenses or setup costs, an appealing combination for small businesses that don’t have dedicated IT resources or large IT budgets. OfficeScreen’s firewall/VPN, Secure Socket Layer (SSL) and IPSec (IP security) bundles create wide area networks that connect remote offices and workers to applications and data at a company’s headquarters, while countering security threats from hackers, worms and viruses across a company’s entire network.
“Today’s SMBs face many of the same risks and regulatory requirements as Fortune 100 corporations,” said Huberman. “Whether it’s HIPAA compliance, SEC regulations, Sarbanes-Oxley requirements or protection from malicious intrusions, SMBs must ensure the privacy of their customers’ data and protect the intellectual property of their businesses. Iomega’s new OfficeScreen services are simple, cost-effective turn-key security platforms that deliver on the network needs of today’s small and medium businesses.”
OfficeScreen, which incorporates multi-function remote access hardware solutions from the Juniper Networks security product lines, creates new growth opportunities for both Iomega and Juniper Networks.
“Iomega's purchase of CSCI and OfficeScreen represents an exciting new opportunity to increase the utilization of the Juniper products with small and medium-sized businesses," said Robert Bruce, Juniper Networks’ Vice President of Americas Channels. "Iomega has a strong global brand name in data protection for small businesses and is well positioned to become a major player in the managed services market. Now that it has acquired OfficeScreen, we look forward to partnering with Iomega to broaden the reach of Juniper’s 'Best in Class' remote connectivity solutions in the SMB space."
Iomega expects to grow the existing OfficeScreen business in the U.S. by selling its branded managed services through several different channels, including telecommunications providers, hosting companies, VARs and Systems Integrators, direct and indirect sales organizations and retail operations. By utilizing its strong European sales infrastructure, Iomega plans to launch its new managed services in international marke