Iomega has acquired ExelStor Great Wall Technology, a hard drive manufacturer based in Shenzhen of China via a stock swap. No cash will change hands.

Iomega CEO Jonathan Huberman will continue in his present positions, while Eddie Lui, who is currently CEO of ExcelStor, will become executive chairman of Iomega. Iomega’s worldwide corporate headquarters will remain in San Diego, California.

Excerpt from eWeek:

When the deal closes, Great Wall will own 43 percent, Iomega itself 32 percent and CEC 25 percent of Iomega. The boards of directors of both Iomega and ExcelStor have unanimously approved the share purchase agreement…

It might be of interest that Great Wall is an indirect subsidiary of China Electronics Co., which is a $16 billion conglomerate wholly owned by the Chinese government.

The new combined company is expected to gross more than $1 billion in annual revenue for 2007 with approximately 3,000 employees worldwide.