more on the acquisition ...
Legato to Buy FullTime Software for $60.4 Million
Bloomberg News
October 26, 1998, 1:30 p.m. PT
Palo Alto, California, Oct. 26 (Bloomberg) -- Legato Systems
Inc., a maker of software to protect and store computer data,
said it will acquire FullTime Software Inc. for about $60.4
million in stock to improve the data-accessibility needs of its
customers.
Legato said it will issue 1.72 million shares in exchange
for all stock and options of FullTime. Each share of Fulltime
will be exchanged for 0.143 of a Legato share, valuing each
FullTime share at about $5.02 at today's closing price.
FullTime is the market leader with a 21 percent share in
high availability clustering products, which make it easier for
customers to access applications and data and are becoming
important for the storage area-network industry. Legato, which
makes storage-management systems, will use FullTime's computing-
solutions business to strengthen its position, said Mark
Kelleher, an analyst at Tucker Anthony Inc.
''The purchase has given Legato a leg up in the business,''
Kelleher said. ''Legato gets two key things, additional products
in the high availability market, and the sales personnel it needs
to wrap up its marketing.''
The transaction, to be accounted for as a pooling of
interests and a tax-free reorganization, is expected to add to
Legato's earnings in 1999. It is expected to close by or shortly
after December and is subject to shareholder and regulatory
approval.
Palo Alto, California-based Legato said it may consolidate
some FullTime sales offices to cut costs after the purchase, and
that Louis C. Cole, president and chief executive, will continue
to head the parent company.
Legato had 1997 sales of $81.8 million, while San Mateo,
California-based FullTime, known as Qualix Group Inc. before it
changed its name in July, had sales of $30 million for the year
ended Sept. 30.
Legato fell 5 3/16 to 35 1/8. FullTime rose 2-9/16 to 4-9/16. |
