EMC completes Legato deal

Storage systems, software and services provider EMC has completed the acquisition of storage software provider Legato. The deal that has taken a little over three months to finalise, and is one that gives EMC a much bigger presence in the storage software market.

The move cost EMC around US$1.3 billion – or 106 million shares of EMC common stock. Under the terms of the deal, will run Legato as a division of EMC, with Legato's former CEO David Wright heading up the division. Wright, who will also fulfil the role of Executive Vice President of EMC, will report to Joe Tucci, EMC's President and CEO.

"We are thrilled with the speed and efficiency at which we closed this transaction," said Tucci. "We've spent the last 100 days developing a bullet proof integration playbook and are prepared and excited to move forward as a combined company. The synergies between EMC and Legato's products, distribution, people and culture have accelerated our ability to create the ultimate information lifecycle management company. Together, EMC and Legato will maximise the value we bring to the market by providing open, heterogeneous software solutions for solving the information management problems plaguing customers today."

EMC said that a detailed multi-year roadmap is in place for every product in the Legato division, though this has yet to be publicly disclosed.

The EMC development team responsible for backup and replication management software will join with Legato's existing R&D group to form a new software development organisation. The group will be led by EMC Senior Vice President Mark Sorenson, who will report to Wright and Mark Lewis, EMC's Executive Vice President of Open Software Operations.

Legato's sales and distribution channels will operate independently from EMC, and its partnerships and specialised selling focus will remain unchanged.

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