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Technology Stocks : LEGATO SYSTEMS LGTO -- Ignore unavailable to you. Want to Upgrade?

To: gmccon who wrote (241)	10/26/1998 2:19:00 PM
From: tom jones	Read Replies (2) \| Respond to of 1138

To all: FTSW had 10.6 million shares diluted in their last earnings release on October 22. I think this contains options also. LGTO will issue 1,721,000 shares for all FTSW shares and options. 10.6 / 1.721 = 6.17 FTSW shares for 1 LGTO share. The only thing we are not sure of is the total number of FTSW shares and options. This is a definitive agreement so buying FTSW will be cheaper than buying LGTO because the deal may fall through and FTSW would drop. If LGTO is bailing out FTSW then the market will take them both lower. I don't know if this is a bailout but insider selling of FTSW stopped in July of this year. Comments please? Tom

To: gmccon who wrote (241)	10/26/1998 9:24:00 PM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 1138

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.