EMC Buys Data Software Firm

The company will pay about $165 miillion.
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EMC (EMC) on Wednesday announced its 12th acquisition of the year -- the purchase of privately held Avamar for approximately $165 million in cash.

Avamar sells software that removes duplicate data during backup operations, reducing network traffic and wasted storage space, said an EMC spokesman.

IDC analyst and vice president John McArthur praised the purchase, saying ""EMC's acquisition of Avamar brings innovative data-protection technology and another creative team into the EMC portfolio, while Avamar gains a powerful channel for the company's solutions."

The acquisition is expected to close within 30 days and is not expected to have a material impact on EMC's revenue or EPS for 2006.

EMC has invested approximately $2.8 billion on acquisitions this year to strengthen its core storage business and expand into adjacent markets.

In recent trading, shares of EMC were up 22 cents to $12.27.