P.M. BRIEFING : Control Data to Sell Subsidiary
<i> From Times wire services </i>
SCOTTS VALLEY, Calif. — Seagate Technology Inc. today said that it has agreed to acquire the data storage products subsidiary of Control Data Corp. in Minneapolis for about $450 million in cash and securities.
Seagate said in a letter of intent that it will pay $250 million in cash, 10.7 million shares--about a fifth of its total outstanding stock--and $50 million in promissory notes for Imprimis Technology Inc.
In a separate statement, Control Data said: “The transaction will permit Control Data to focus its own efforts on the growing services and systems integration businesses.” It said it will use the proceeds to pay down debt and build up its working capital.
