Veritas to acquire Seagate Software
Next month, Veritas Software`s acquisition of Seagate Software is expected to be finalized. With an estimated stock value of $1.6 billion, the merger will make Veritas the largest storage management software provider for distributed systems environments.
As part of the Network and Storage Management Group (NSMG) of Seagate Technology, Seagate Software is a leading network backup and recovery supplier for workgroup and Windows NT environments with its flagship Backup Exec suite. Veritas is a developer of file system, volume management, storage resource management, backup, and hierarchical storage management (HSM) software.
Veritas officials believe customers will benefit from the complementary product lines. "By having synergy in the channel, now there`s a single point where our customers can buy a wide variety of network and storage management products," says Peter Levine, senior vice president for Veritas` OEM sales, mergers and acquisitions.
Industry observers recognize the merger`s symbiotic benefits and regard the acquisition as another example of how storage management software companies are positioning themselves to provide desktop-to-data-center solutions.
According to Carolyn DiCenzo, director and principal analyst at Dataquest, a market research firm in San Jose, Seagate NSMG`s long-term success was cloudy because, as more customers consolidate storage resources, they look for an end-to-end solution that NSMG did not have. On the other hand, DiCenzo believes Veritas needs Seagate`s workgroup products, expertise, and strong VAR channel to achieve its objectives.
Once the merger is approved, Seagate Software president and COO Terry Cunningham will become Veritas president and COO. Mark Leslie, Veritas CEO, will retain his position and become chairman of the board of directors. No significant layoffs are expected.