EMC agree to buy rival company

EMC Corp, the world’s third-biggest maker of data-storage systems, agreed to buy software rival Legato Systems Inc. for $1.3 billion in stock, to sell more higher-profit programs and rely less on sales of machines.

EMC, which has a plant employing 1,200 people in Ovens, County Cork, will pay 0.9 share for each Legato share, the companies said on EMC’s Web site.

That values Legato at $10.57 a share, 16% above the company’s $9.10 close yesterday. but later fell back to $11.40 down 34 cents in late trade.