December 26, 2000, 4:45 PM — Storage giant EMC announced Monday that it will purchase publicly held Softworks for $192 million in cash.
Hooking EMC to the deal was Softworks' storage resource management technology, which EMC plans to blend into its Control Center, a storage software solution jointly developed and launched by EMC and Oracle last October.
"Softworks has developed a whole set of technology related to storage management," said Mark Fredrickson, director of corporate communications at EMC. "And software is a very growing part of our industry."
EMC profits from software alone have doubled every year for the past three years, according to Fredrickson.
"The technology that Softworks has developed fits very well within the Control Center framework," said Fredrickson, who expects new software products from the acquisition to arrive in early 2000 after "some engineering work" to integrate the Softworks technology with that of EMC.
According to the terms of the acquisition, expected to be completed by the end of first quarter 2000, EMC will buy all outstanding shares of Softworks for $10 a share. Minority Softworks shareholders then will tender their shares to the offer.
The acquisition has been approved by the board of directors of each company but will be subject to regulatory review.