EMC Corp. said it will buy Legato
Systems Inc. for $1.3 billion in stock, making its 10th
acquisition in three years in software, which is more profitable
than hardware.
EMC, the world’s third-largest maker of computer data-storage
systems, will pay 0.9 share for each Legato share, the companies
said in a Business Wire statement. That values Legato at $10.57 a
share, 16 percent more than its closing price of $9.10 yesterday.
Beyond Cash Donations: How New Forms of Giving Are Transforming Not-for-Profit Accounting
Evolving Funding Landscape for Not-for-Profits Not-for-profit organizations are being asked to do more with less,…
Learn More
Legato, which makes programs to coordinate communication
among different types of computer systems, is the 10th software
maker EMC has purchased since January 2000. The Hopkinton,
Massachusetts-based company wants to get 30 percent of its sales
from software by 2005, up from 22 percent in the first quarter.
“Legato is a perfect addition,” said Daniel Kerbach, who
helps manage the equivalent of $53 billion at Activest Investment
GmbH in Munich and holds EMC shares. “The customer can now get a
complete hardware and software solution in one place.”
Bloomberg News
