Tech Industry

Legato to acquire OTG Software

Legato Systems, which makes storage software for data backup and other operations, has signed an agreement to acquire OTG Software for about $403 million, the companies said Thursday. OTG's software "virtualizes" storage systems, shielding users from having to know precisely which hardware is storing their data and making it easier for administrators to reconfigure storage systems. Under the deal, OTG shareholders will receive 0.6876 shares of Legato stock for each OTG share, and OTG shareholders will own about 21 percent of the combined company's shares, the companies said. In addition, OTC Chief Executive Richard Kay will join Legato's board.

Legato Systems, which makes storage software for data backup and other operations, has signed an agreement to acquire OTG Software for about $403 million, the companies said Thursday. OTG's software "virtualizes" storage systems, shielding users from having to know precisely which hardware is storing their data and making it easier for administrators to reconfigure storage systems.

Under the deal, OTG shareholders will receive 0.6876 shares of Legato stock for each OTG share, and OTG shareholders will own about 21 percent of the combined company's shares, the companies said. In addition, OTC Chief Executive Richard Kay will join Legato's board.