US storage giant EMC, which employs 1,400 people in Cork, has revealed its intention to acquire information lifecycle software firm Legato for US$1.3bn.
In a move that adds a vast set of capabilities to EMC’s products and technologies, particularly in the realm of hierarchical storage management (HSM) and email and content management, the deal is expected to close in the fourth quarter this year, and indicates a growing consolidation in the technology sector. Under the terms of the deal, Legato shareholders will receive 0.9 cents a share of EMC common stock for each share of Legato common stock, valuing Legato at US$1.3bn.
In a statement today, Joe Tucci, EMC’s president and CEO, said: “This combination is all about improving the access, management and protection of an organisation’s core asset – information – through its complete lifecycle. We’re combining best-of-breed storage technology, two winning employee populations with similar reputations for customer focus, and two experienced management teams with highly complementary visions for the future of information management.”
On completion of the acquisition, EMC intends to operate Legato as a software division headquartered in California. Legato employs 1,500 people. The company’s CEO, David Wright, will stay on as president of the Legato business unit, EMC said. Before the acquisition, the Silicon Valley software company’s sales were predicted to grow to US$316m this year from US$262m last year.
By John Kennedy