TeleBackup Systems Inc, the Canadian developer of remote backup software which agreed to be acquired by Veritas Software Corp for $85m last month (CI No 3,487) has since seen the deal overshadowed by last week’s Veritas-Seagate Software merger. Shares plunged on the news of the Seagate deal, said to be the third largest ever in the software industry. On Friday, TeleBackup said the acquisition was proceeding as planned, and that the share price plunge should not be taken as an indication of adverse news. Veritas said that the TeleBackup remote backup and restore product was an excellent fit not only with the current Veritas software family but also the Seagate product line. Brian Osing, president and CEO of TeleBackup, said that the market was reacting negatively to the uncertainty surrounding a merger of this magnitude in an already volatile market.
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