News
EMC buys Legato for $1.3B
- By Jack Vaughan
- July 8, 2003
EMC Corp., Hopkinton, Mass., has agreed to purchase long-time open-systems distributed storage software provider Legato in a stock transaction valued at about $1.3 billion.
The move comes on the heels of last week’s news that EMC will acquire the Patrol Storage Manager line from Houston-based BMC. Taken together, these moves indicate hardware giant EMC’s renewed effort to increase its storage-related software sales.
Under the terms of the agreement, Legato stockholders will receive 0.9 of a share of EMC common stock for each share of Legato common stock. The acquisition is subject to customary closing conditions, including Legato’s stockholder and regulatory approvals, and is expected to be completed in the fourth quarter of calendar year 2003.
EMC said it intends to operate Legato as a software division of EMC headquartered in Mountain View, Calif., and led by David B. Wright, Legato’s current Chairman and CEO.
About the Author
Jack Vaughan is former Editor-at-Large at Application Development Trends magazine.