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.
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
