The biggest merger of software companies since IBM took over Lotus was completed today with Veritas Software issuing 34 million shares to Seagate Technology in exchange for Seagate Software's Network and Storage Management Group (NSMG).
The deal values Seagate's NSMG operations at $US2.7 billion while the combination of these two major enterprise storage players should deliver a broad-reaching ally for resellers focused on that space. The booming storage area network (SAN) is one of the key targets of the bigger, broader entity, a Veritas statement said.
Plans were also unveiled to spend $US1.5 billion in storage management software research and development over the next five years. The focus of the research will be to develop products which help enterprises better "protect, access, and manage business-critical application information" according to a Veritas statement.
Research by IT analysts show Veritas to be a leading provider of enterprise class storage management while Seagate's Back-Up Exec has become a dominant player in enterprise back-up solutions being sold by Australian resellers.