British software company Micro Focus International plc (LSE: MCRO) has acquired Israeli software developer NetManage Inc. (Nasdaq: NETM) at $7.20 per share for a total of $73.3 million. The transaction was made at a premium of 73% on NetManage's closing price of $4.15 yesterday. The companies expect to close the deal in June.
Micro Focus makes enterprise application management and modernization solutions, while NetManage develops solutions for transforming transform legacy applications into new Web-based business solutions. The consolidation will enable the companies to create a better software legacy modernization product.
Micro Focus CEO Stephen Kelly said, "The combination of Micro Focus and NetManage will provide the enlarged group with further opportunities for growth through a more comprehensive and broader product offering, enhancing our position as a leading player in the applications modernization market."
NetManage chairman and CEO Zvi Alon, added, "We feel confident this is the right strategy for our shareholders, customers and employees and that Micro Focus will continue to build on our legacy. NetManage's specialized solutions for integrating, Web enabling, and accessing enterprise information systems will strengthen and advance Micro Focus's set of offerings."
Micro Focus said that it expects $226-228 million revenue for the fiscal year ending on April 30, 2008. NetManage has a market cap of $40 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 1, 2008
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