LEGATO BUYS INTELLIGUARD FOR $52M.
Enterprise storage management outfit Legato Systems Inc announced
Thursday that it will acquire privately-held Intelliguard Software Inc,
a specialist in Unix and NT standards-based storage management systems
for Storage Area Networks (SAN). Under terms of the deal, Legato will
issue 720,000 shares of stock and the cash equivalent of 180,000
shares at the closing price on the day preceding the completion of the
transaction, for all of the outstanding stock of Intelliguard. Based on
Legato's closing price on January 27, the deal is valued at
roughly $52m. Legato says it expects the acquisition will be accretive
to its 1999 earnings. It should close in March and will be accounted
for as a purchase. Legato reckons the deal will propel it into a
leadership position in the SAN marketplace. Intelliguard developed the
Celestra architecture, which is said to provide the industry's
first true 'server-less' backup for the SAN market.
Intelliguard also co-developed the Network Data Management Protocol,
which is set to become the industry standard for management of Network
Attached Storage, having already been endorsed by EMC Corp, Storage
Technology Corp, Network Appliance Inc and Veritas Software Corp. The
deal follows two others Legato has made recently to elevate its
position in the emerging SAN market, with its acquisition of FullTime
Software Inc in October for $69m and it purchase of Software Moguls Inc
in August for $10.8m.