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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (12377)	7/27/1999 11:50:00 PM
From: New Economy	Read Replies (1) \| Respond to of 18016

Good call on Storage Networks Pat: dailynews.yahoo.com Tuesday July 27 7:43 PM ET IBM Bolsters Data Storage With Buy Of Mylex NEW YORK (Reuters) - International Business Machines Corp. (NYSE:IBM - news) Tuesday said it would buy Mylex Corp. (Nasdaq:MYLX - news), a maker of controllers and adapters used in data storage systems, for $240 million. The Armonk, N.Y.-based computer giant, which Monday unveiled a new line of high-end data storage systems, said it will pay $12 a share for Fremont, Calif.-based Mylex, a 17 percent premium over the Tuesday closing price of $10.25 a share. IBM's recent moves show a concerted effort to recapture momentum in a category it pioneered but in which it later lost market leadership to Hopkinton, Mass.-based EMC Corp. (NYSE:EMC - news) . The explosive growth of the Internet, particularly for use in electronic commerce -- or ''e-business,'' in IBM parlance -- has swelled demand for data storage to the point where the category now uses up to 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. IBM's new high-end products can hold up to 11 terabytes of data, more than enough for the entire contents of the U.S. Library of Congress, and almost two terabytes more than EMC's machines. The Mylex products help storage systems to maintain security and to optimize performance. IBM said the acquisition will allow it to provide a more complete data storage product line to customers. The Mylex product line will continue to be sold to third-party manufacturers of storage systems as well as be combined with IBM's own product lines. The market for external data storage (equipment not built directly into the computers) is expected to grow to $21 billion in 2003, up from $10.5 billion in 1998, according to market research firm Dataquest. Founded in 1983, Mylex has more than 300 employees worldwide and had revenues of $135.7 million in 1998. IBM shares rose $2.81, to $126.25, in New York Stock Exchange trading Tuesday amid a broader market rally. The announcement that it would buy Mylex came after the close of trading in U.S. markets. Earlier Stories IBM Buying Storage Technology Company Mylex (July 27) -------------------------------------------------------------------------------- Search News Stories Search News Photos Jul 26 \| Jul 25 \| Jul 24 \| Jul 23 \| Jul 22 \| Jul 21 \| Jul 20 \| Jul 19 \| Jul 18 \| Jul 17 Home \| Top Stories \| Business \| Tech \| Politics \| World \| Local \| Entertainment \| Sports \| Science \| Health -------------------------------------------------------------------------------- Questions or Comments Copyright © 1996-1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.