Legato Systems, providers of business software and OTG Software, a provider of data storage, data access and email management solutions, have signed a definitive merger agreement under which Legato will acquire all of the outstanding shares of OTG in a cash and stock transaction valued at approximately $403 million.
The merger agreement provides that each share of OTG common stock will be converted into the right to receive 0.6876 of a share of Legato common stock and $2.50 per share in cash.
The closing of the merger is subject to customary conditions, including shareholder approval by both companies and regulatory approval of the transaction.
After the merger is completed, OTG’s shareholders will own approximately 21% of the combined entity’s shares. The companies anticipate that the transaction will close by the end of the second calendar quarter of 2002.