IBM BUYS MYLEX-------------comments?
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Tuesday July 27, 6:16 pm Eastern Time
IBM to buy storage technology co Mylex for $240 mln
ARMONK, N.Y., July 27 (Reuters) - International Business Machines Corp. (NYSE:IBM -
news) said Tuesday it agreed to acquire Mylex Corp. (Nasdaq:MYLX - news), a maker of
high performance computer storage hardware and software, for $240 million in cash.
IBM, which on Monday unveiled of a new lineup of high- volume data storage systems,
will pay $12 for each Mylex share, a 17 percent premium over Mylex's closing price of
$10.25 a share.
The moves represent a concerted effort by the world's largest computer company to
recapture momentum in high end corporate storage systems, a lucrative category it pioneered but one where it later lost
market share leadership to Hopkinton, Mass.-based EMC Corp. (NYSE:EMC - news)
Spiraling Internet use, particularly for electronic commerce -- or ''e-business'', in IBM parlance -- has swelled demand for
data storage to the point where the category now devours as much as half of corporate technology spending.
''The demands of e-business and an increasing number of data-intensive applications are fueling the growth of the
storage business at all levels,'' said Ron Kilpatrick, general manager of IBM's Storage Systems division.
Mylex, founded in 1983 and based in Fremont, Calif., has more than 300 employees worldwide and had revenues of
$135.7 million in 1998.
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