本文发表在 rolia.net 枫下论坛EMC to buy software firm for $1.3 billion
By John G. Spooner and Matt Hines
Staff Writer, CNET News.com
July 8, 2003, 8:17 AM PT
http://news.com.com/2100-1015-1023639.html

Storage systems maker EMC said Tuesday it would buy Legato Systems in a stock deal valued at $1.3 billion, broadening its reach in the storage software sector.
EMC plans to purchase Mountain View, Calif.-based Legato for its storage management software. This is the latest in a string of deals that expands EMC's portfolio of applications for managing storage systems. EMC, based in Hopkinton, Mass., bought Astrum Software in April for its storage management software.

Storage management software, which helps companies that buy EMC hardware handle their masses of data, is becoming an important point of differentiation between EMC and its storage rivals, which include Hewlett-Packard, Hitachi, IBM and Sun Microsystems.

Legato's products include backup and recovery applications that give companies the ability to archive e-mail and other sources of data.

"Legato helps fill the gaps we had in the data management space and gives us significantly more presence in other areas of the (storage) market," EMC Chief Executive Joe Tucci said in a conference call Tuesday.

Tucci said EMC would work with Legato to integrate the two vendors' products around a single architecture, indicating his belief that customers are turned off by systems built from "parts or pieces." However, Legato's sales force would remain independent and coordinate with EMC under what Tucci called a "Tivoli model," referring to the structure of IBM and its network management software group.

While storage hardware can be improved by increasing its data capacity or by beefing up components to prevent failures, management software that allows different types of hardware to work together or that makes data more accessible is often what wins customers because it helps companies gain a return on their storage investments.

Industry analysts responded positively to the merger announcement, calling the proposed deal a win for both parties. Ray Paquet, analyst at Gartner said there was no other company in the storage space that would have complemented EMC as neatly as Legato.

"From a revenue generation standpoint, this moves EMC from a nonplayer role in the backup sector to the third largest player," Paquet said. "However, it won't be easy for the combined companies to displace Veritas from the top spot--maybe they can move closer to IBM at No. 2 or drain some profit from the market."

Rob Schafer, an analyst at Meta Group, agreed that there were benefits for both EMC and Legato but indicated that the potential merger does detract somewhata from Legato's appeal.

"One of Legato's biggest strengths was that it was hardware-agnostic," he said. "Even though (EMC and Legato) are promising some level of independence, people will know that it is now ostensibly EMC under the covers with Legato products."

But the chief executive at the software company emphasized the positive side of joining forces with EMC.

"If there has been any stumbling block for Legato, it has been a lack of resources," said Legato CEO David B. Wright, who will join EMC as an executive vice president. "Overall viability of Legato has always been an issue with customers, but we expect that will no longer be the case (based on the merger)."

The analysts agreed that the deal may also create a wrinkle for HP, Sun Microsystems and others that have licensed Legato software. Schafer pointed out, however, that if HP's and Sun's best alternative to doing business with the combined EMC-Legato would be to turn to rival IBM, they would likely maintain their current affiliation.

The $1.3 billion value affixed to the deal is based on EMC's closing price of $11.74 on Monday. Under terms of the agreement, Legato shareholders will receive 0.9 of a share of EMC's stock for each share of Legato stock.

The deal values Legato shares at $10.56, a 16 percent premium over Legato's closing price on Monday.

EMC expects the deal to close in the fourth quarter, the company said.

Separately, EMC updated on Tuesday its revenue forecast for the second quarter. The company expects its revenue to be toward the high end of its previously stated range of $1.425 billion to $1.475 billion. Earnings per share should be 3 cents to 4 cents per share, compared with its previous forecast of 3 cents per share, the company said.

Ultimately, EMC will take a charge for current research and development at Legato during the quarter in which the transaction closes. EMC said it still expects to report a net profit in each quarter this year. The company also expects the Legato purchase to add to its bottom line in 2004.更多精彩文章及讨论，请光临枫下论坛 rolia.net