Legato to Buy OTG Software for $403 Million
Data-protection giant
Legato Systems
(LGTO)
agreed to buy storage software maker
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OTG
(OTGS)
for $403 million, or $11.13 a share.
Each OTG Software share will convert into a right to receive 0.6876 of a Legato common share and $2.50 cash. OTG closed Wednesday down 30 cents, or 3.2%, at $9.20. Legato Systems closed up 55 cents, or 4.6%, to $12.55.
OTG shareholders will own about 21% of the combined company when the deal closes in the second quarter, Legato said. The transaction must be approved by shareholders of both companies and the government.
