EMC Corp, regarded as the market leader in data storage systems, has agreed to buy Data General Corp, a top maker of mid-range computer data storage products, for $1.1 billion in stock, the companies said yesterday.
The acquisition enables Massachusetts-based EMC, which employs more than 700 people in Cork, to tap into the mid-range storage market, which typically serves systems priced from $100,000 to $1 million.
Data General's CLARiiON storage products are recognised as among the most advanced in the world, and its research and development could find uses in EMC's existing products, the companies said.
EMC's chief executive, Mr Michael Ruettgers, said: "Data General's products have proven technology leadership in the midrange storage market but have lacked the global distribution and support needed to achieve their full market potential.
Data Storage holds 4 per cent of the total $10 billion data storage market. It had about $356 million in revenues in the third quarter ended June 26th, 1999.
EMC will issue 0.3262 share of common stock for each share of Data General. The deal values Data General at about $19.58 a share, based on EMC's August 6th closing stock price, the companies said.
