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Legato Buys OTG Software

Two storage software vendors joined Thursday when Legato Systems Inc. announced its intention to purchase OTG Software Inc.

The merger is subject to shareholder approval, and the companies expect it will be completed around June of this year.

The companies pitch the merger as a way to leverage their individual product offerings and sales channels. Bill Cable, executive vice president at OTG, says there is “virtually zero product overlap” between the two companies, yet their expertise is complementary.

Legato’s product offerings focus on managing stored data on back-end systems such as databases. It is known for backup-and-recovery products like NetWorker and management tool such as AlphaStor.

OTG specialized in managing data in front office applications like email and specialized applications for vertical industries such as health care and financial services. OTG started out in 1992 with a tight focus on managing storage around Windows systems. Since then the company has expanded its focus to manage storage of Unix and Linux systems as well.

Channel partners for the two companies are also different. OTG has focused on developing relationships with regional system integrators and OEMs that target specific industries, while Legato has relied primarily on direct sales. Cable believes the combination of channel partners will help them expand their reach in the marketplace.

OTG will keep its offices in Maryland and no major changes are expected in its product lineup. “Everything is business-as-usual,” Cable says.

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