VERITAS Software Corporation, the industry`s leading enterprise-class application storage management software provider, has announced the completion of its acquisition of the Seagate Software Network and Storage Management Group (NSMG), a majority-owned subsidiary of Seagate Technology Inc. (NYSE:SEG).
The Seagate Software NSMG acquisition, which closed Friday, May 28, 1999, was approved by both VERITAS Software`s and Seagate Software`s boards of directors. Seagate Software NSMG, including its employees, products and offices, will become part of VERITAS Software, which will be the industry`s largest independent storage management software vendor, delivering solutions to enterprise customers that demand continuous availability of business-critical information.
The merger is a tax-free transaction to be accounted for as a purchase. VERITAS Software will issue 34 million shares to Seagate Technology for Seagate Software NSMG`s business, valued at approximately $2.7 billion, and will assume employee options of Seagate Software NSMG.
The resulting company, with 2,300 employees residing in 17 countries, will be headed by Mark Leslie, the previous president and CEO of VERITAS Software, who now holds the office of chairman of the board of directors and CEO, VERITAS Software. Terry Cunningham, formerly president and chief operating officer of Seagate Software, is now the president and chief operating officer of VERITAS Software. The company`s board of directors will be expanded from its current seven directors to add Terry Cunningham and two directors appointed by Seagate Technology. These directors are Steve Luczo, president and CEO of Seagate Technology, and Greg Kerfoot, chief strategic officer of Seagate Software.
"The union of VERITAS Software and Seagate Software NSMG yields an unprecedented `pure play` in enterprise-class application storage management," says Mark Leslie, chairman of the board and chief executive officer of VERITAS Software. "By integrating our strengths, the new VERITAS Software is poised to be the storage management software leader for UNIX, Windows NT and NetWare operating environments, ensuring continuous information availability for business-critical applications.
The combined company offers superior products and technology, an unmatched roster of strategic partners, a diversified sales model that optimises direct and indirect channels, and enterprise-class, worldwide service and technical support to meet the needs of all customers, regardless of size."
"The similar company cultures and common vision of VERITAS Software and Seagate Software NSMG have enabled us to leverage the best assets from each entity as we mapped out a detailed integration strategy to achieve a continued leadership position," says Terry Cunningham, president and chief operating officer of VERITAS Software. "To deliver business without interruption to our customers, our product integration plan will optimise both companies` product lines to help protect, access and manage our customers` critical application information.
To sustain VERITAS Software`s momentum as we combine, we have developed in-depth plans for product integration, campaigns to build product brand equity and a consolidated sales strategy for channel harmony."
Share