VERITAS and Seagate Software Announce Merger, Creating Industry Leader in Storage Management

Strategic Insights -

VERITAS and Seagate Software Corporation, a subsidiary of Seagate Technology, have announced a definitive agreement to merge, forming a new company that will retain the name VERITAS Software Corporation. The merger is expected to create an industry leader in storage management software, with a comprehensive portfolio of products and a global distribution channel. The combined company will have a strong presence in both the UNIX and Windows NT storage management market segments, with a range of products that meet virtually any storage need.

Key Takeaways:

  • The merger will create a company with an unprecedented range of products, including backup and recovery, core operating system level storage, storage resource management, and high availability solutions.
  • The combined company will have a global distribution channel, with a powerful direct sales force, a network of resellers and OEM partners, and a comprehensive desktop-to-data center portfolio of storage software products.
  • The merger will bring together compatible cultures with a common vision, offering storage-centric computing and SANs, and creating a company with the industry stature, focus, and technology base to lead the storage industry.
  • The new company will be led by Mark Leslie, current president and CEO of VERITAS, and will include Terry Cunningham, current president and chief operating officer of Seagate Software, as president and COO.
  • The merger is expected to be completed in January 1999, subject to stockholder approval, clearance by the U.S. Securities and Exchange Commission, and clearance under antitrust laws.

Statistics:

  • The merger will create a company with an estimated 2,300 employees residing in 16 countries.
  • The combined company will have a product strength in UNIX storage solutions, while Seagate Software NSMG's strength is in Windows NT and NetWare.
  • The new company will have a comprehensive product line that meets virtually any storage need.

Sources:

  • Business Wire, October 5, 1998
  • VERITAS Software Corporation
  • Seagate Software, Inc.
  • Seagate Technology, Inc.