DESKTOP DATA INC
SC 13G, 1996-02-13
COMPUTER PROCESSING & DATA PREPARATION
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                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549


                                  SCHEDULE 13G


                   UNDER THE SECURITIES EXCHANGE ACT OF 1934
                             (AMENDMENT NO.      )*

                              Desktop Data, Inc.
- --------------------------------------------------------------------------------
                               (Name of Issuer)

                    Common Stock, $.01 par value per share
- --------------------------------------------------------------------------------
                        (Title of Class of Securities)

                                  25057H-10-1
                    ---------------------------------------
                                (CUSIP Number)


Check the following box if a fee is being paid with this statement . [X] (A fee
is not required only if the filing person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7).

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).

                                       Page 1 of 6 pages
<PAGE>
 
- -----------------------                                  ---------------------
 CUSIP NO. 25057H-10-1                   13G               PAGE 2 OF 6 PAGES
- -----------------------                                  ---------------------
 
- ------------------------------------------------------------------------------
      NAME OF REPORTING PERSON
 1    S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
                          
      Donald L. McLagan
      ###-##-####

- ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
 2                                                              (a) [_]
                                                                (b) [X]
                                                 
- ------------------------------------------------------------------------------
      SEC USE ONLY
 3
 

- ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 4    
      United States

- ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     5     
     NUMBER OF            1,693,349     
                      
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      6    
                          431,442
     OWNED BY
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     7     
    REPORTING             1,693,349
 
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH          8    
                          431,442
- ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 9    
      2,124,791

- ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*[_]
10                  
      
 
- ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
11    
      25.0%

- ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON*
12
      IN

- ------------------------------------------------------------------------------

                     *SEE INSTRUCTION BEFORE FILLING OUT!


                               Page 2 of 6 pages

<PAGE>
 
ITEM 1.

   (a) Name of Issuer.
       -------------- 

       Desktop Data, Inc.

   (b) Address of Issuer's Principal Executive Offices.
       ----------------------------------------------- 

       1601 Trapelo Road
       Waltham,  MA  02154

ITEM 2.

   (a) Name of Person Filing.
       --------------------- 

       Donald L. McLagan

   (b) Address of Principal Business Office, or, if none, Residence.
       ------------------------------------------------------------ 

       c/o Desktop Data, Inc.
       1601 Trapelo Road
       Waltham,  MA  02154

   (c) Citizenship.
       ----------- 

       United States

   (d) Title of Class of Securities.
       ---------------------------- 

       Common Stock, $.01 par value

   (e) CUSIP Number.
       ------------ 

       25057H-10-1


ITEM 3.  IF THIS STATEMENT IF FILED PURSUANT TO RULE 13D-1(B), OR 13D-2(B),
CHECK WHETHER THE PERSON FILING IS A:
 
   (a) -- Broker or Dealer registered under Section 15 of the Act
 
   (b) -- Bank as defined in Section 3(a)(6) of the Act
 
   (c) -- Insurance Company as defined in Section 3(a)(19) of the Act
 
   (d) -- Investment Company registered under Section 8 of the Investment
          Company Act
 
   (e) -- Investment Advisor registered under Section 203 of the Investment
          Advisers Act of 1940

                               Page 3 of 6 pages
<PAGE>
 
   (f) -- Employee Benefit Plan, Pension Fund which is subject to the
          provisions of the Employee Retirement Income Security Act of 1974 or
          Endowment Fund; see Section 240.13d-1(b)(1)(ii)(F)

   (g) -- Parent Holding Company, in accordance with Section 240.13d-
          1(b)(ii)(G) (Note:  See Item 7)

   (h) --   Group, in accordance with Section 240.13d-1(b)(1)(ii)(H)

   Not applicable.


ITEM 4.  OWNERSHIP.

   (a) Amount Beneficially Owned.
       ------------------------- 

       Donald L. McLagan beneficially owns 2,124,791 shares of Common Stock.
This includes 414,442 shares which are held in trust for the benefit of Mr.
McLagan's two children, of which Mr. McLagan's wife is the sole trustee and
17,000 shares held by Trinity College, of which Mr. McLagan is a trustee.

   (b) Percent of Class.
       ---------------- 

       Mr. McLagan's 2,124,791 shares of Common Stock represents approximately
25.0% of the outstanding Common Stock of Desktop Data, Inc.  The percentage is
calculated by dividing the number of shares beneficially owned by Mr. McLagan by
the 8,510,680 shares of Common Stock reported to be outstanding on December 31,
1995 in a Desktop Data, Inc. press release.

   (c) Number of shares as to which such person has:
       -------------------------------------------- 

       (i)   sole power to vote or to direct the vote:
             ---------------------------------------- 

             1,693,349 shares

       (ii)  shared power to vote or to direct the vote:
             ------------------------------------------ 

             431,442 shares

       (iii) sole power to dispose or to direct the disposition of:
             ----------------------------------------------------- 

             1,693,349 shares

                               Page 4 of 6 pages
<PAGE>
 
       (iv)  shared power to dispose or to direct the disposition of:
             ------------------------------------------------------- 

             431,442 shares


ITEM 5.  OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS.

   Not applicable.


ITEM 6.  OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON.

   Not applicable.


ITEM 7.  IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE
SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY.

   Not applicable.


ITEM 8.  IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP.

   Not applicable.


ITEM 9.  NOTICE OF DISSOLUTION OF GROUP.

   Not applicable.


ITEM 10.  CERTIFICATION.

   Not applicable.

   Not filed pursuant to Rule 13d-1(b).

                               Page 5 of 6 pages
<PAGE>
 
                                   SIGNATURE

   After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.


February 12, 1996                      /s/ Donald L. McLagan
                                       ---------------------
                                       Donald L. McLagan

                               Page 6 of 6 pages


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