There goes another product that integrates with TSM... Thu Feb 21,12:44 PM ET
MOUNTAIN VIEW, Calif. (Reuters) - Software company Legato Systems Inc. on Thursday said it would buy OTG Software Inc. for $403 million in a cash-and-stock deal that expands its data management offerings. The news sent shares of Legato down 18.25 percent, or $2.30, to $10.25 by early afternoon trade on the Nasdaq. OTG shares rose 4.46 percent, or 41 cents, to $9.61. The deal values OTG at $11.13 per share, Legato said. Under terms of the agreement, each OTG share will be converted into the right to receive 0.6876 of a share of Legato common stock and $2.50 per share in cash. OTG shareholders will own about 21 percent of the combined company after the transaction is completed. The deal should close in the second quarter of 2002, Legato said. Legato makes software that lets companies manage their data storage systems. OTG competes with Legato in the storage management market but also makes software to manage the way employees access data such as e-mail, media files or any other type of electronic information stored in computers. "Today's announcement represents further expansion of our core strategy ... to provide our customers solid information protection ... and the ability to manage and maintain an application environment," David Wright, Legato chief executive said in a statement. The deal must be approved by shareholders of both companies and regulators. JPMorgan H&Q, a division of J.P. Morgan Securities Inc., served as financial advisor to Legato. Goldman Sachs & Co. served as financial advisor to OTG. -- Joshua S. Bassi Sr. Solutions Architect @ rs-unix.com IBM Certified - AIX/HACMP, SAN, Shark Tivoli Certified Consultant- ADSM/TSM Cell (415) 215-0326
