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Technology Stocks : Veritas (VRTS) -- Ignore unavailable to you. Want to Upgrade?

To: The ChrisMeister who wrote (221)	10/6/1998 2:15:00 PM
From: Beltropolis Boy	Read Replies (2) \| Respond to of 742

is there a new sheriff in town? SEG CEO calls it "a category killer." sneaking a peek over from the LGTO board ... hope you don't mind. VERITAS TO BUY SEAGATE SOFTWARE October 6, 1998 NEW YORK -(Dow Jones)- Veritas Software Corp., a developer of reliability software that diverts a company's stored computer data to a backup system in the event of a crash, Monday announced it has agreed to acquire disk-drive maker Seagate Technology Inc.'s storage-software business in a deal valued at about $1.6 billion. Veritas (VRTS) said it will issue about 33 million shares in the deal. The Mountain View, Calif., company said the transaction is expected to be completed by January. The merged company will have 2,300 employees and provide storage-management software to systems based on the older Unix and newer Windows NT operating systems. Veritas specializes in software that manages Unix-based systems while the Seagate division's specialty is in backing up systems running Microsoft Corp.'s Windows NT programs. Mark Leslie, Veritas President and Chief Executive, will become chairman and chief executive of the new company. Terry Cunningham, president and chief operating officer of Seagate Software, will hold that title in the new company. In addition, the new company's board will be expanded from its current seven Veritas directors to include Cunningham and two directors appointed by Seagate Technology. Seagate (SEG) will hold a 35% stake in Veritas after the deal is completed. Seagate Chief Executive Officer Stephen Luczo said the deal will create "a category killer" but acknowledged that Legato Systems Inc. and Computer Associates International Inc. also target the market. Luczo said discussions took place for several months and that Seagate had considered selling off the software division in an initial public offering. "We considered an IPO but thought this created a lot stronger company."