EMC to Buy Rival

EMC Corp., the world’s No. 1 maker of corporate computer-storage systems, agreed to buy rival Data General Corp. for about $1 billion in stock to add products for mid-size businesses. The acquisition will help EMC boost sales to companies that want to do more business online but can’t afford its top-of-the-line storage equipment.

Hopkinton, Mass.-based EMC has about 35% of storage sales to big companies, though rivals including Dell Computer Corp. and Compaq Computer Corp. are selling cheaper machines to target the $10-billion market for small and mid-size companies. EMC will also assume $212 million in debt of Westboro, Mass.-based Data General.

On the NYSE, EMC shares fell $3 to close at $57; Data General stock surged $4.25 to close at $17.44.