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EMC buying Data General
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August 9, 1999: 7:19 a.m. ET
Deal worth about $1.1B; EMC to boost offerings in midrange data storage
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NEW YORK (CNNfn) - Data storage equipment supplier EMC Corp. agreed early Monday to buy Data General Corp. in a stock swap worth an estimated $1.1 billion, boosting EMC's offerings in the midrange data storage market.
Under the terms of the deal, EMC (EMC) will issue 0.3262 of a share of EMC common stock for each share of Data General (DGN) outstanding. Based on a closing price of $60 for EMC stock Friday, the deal is worth about $19.58 per Data General share. That's a premium of about 33 percent above Data General's closing price of $13.19 Friday.
The deal, which is subject to approval by Data General shareholders and regulatory review, is expected to close by the end of the year, EMC said. The company said the deal should add to its earnings beginning in fiscal 2000.
EMC said the midrange storage market is rapidly growing, accounting for about $10 billion in sales last year. Data General's storage products "provide an excellent complement to our high-end Symmetrix Enterprise Storage Family," EMC's CEO, Michael C. Ruettgers, said in a statement announcing the deal.
Both companies are based in Massachusetts.
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EMC
Data General
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