8th Dec 2008 07:00
8 December 2008
Micro Focus International plc (LSE: MCRO.L)
Agrees to Acquire Relativity Technologies, Inc.
The Board of Micro Focus International plc is pleased to announce it has reached agreement to acquire Relativity Technologies, Inc., a leader in Enterprise Application Modernization solutions, for approximately US$9.7 million in cash.
The Board of Micro Focus believes that combining the businesses of Micro Focus and Relativity will further strengthen Micro Focus's position as a leading player in the fast growing, highly fragmented Application Modernization market. In addition, Relativity's business operations will further expand Micro Focus's geographic reach, partner relationships and international customer base. Micro Focus has a strong track record for rapidly integrating companies that it has acquired.
The Directors of Relativity have unanimously approved the terms of the offer, which is subject to customary closing conditions and approval by Relativity shareholders. The transaction is expected to close before the end of December 2008.
The Board of Micro Focus believes that the acquisition will be earnings enhancing in the year ended 30 April 2009 (before amortisation of intangible assets and one-off integration and restructuring costs).
Commenting on the Offer, Stephen Kelly, Chief Executive Officer of Micro Focus International plc, said:
"In this tough macroeconomic environment, CEOs are crying out to slash IT costs. Application Modernization projects - which provide payback in weeks - answer that call. The combination of Micro Focus and Relativity will enhance Micro Focus's position as a leading player in the expanding Application Modernization market."
"We are well placed to capture significant value from this acquisition. It is intended that the Relativity business will be fully integrated into the Micro Focus group following completion of the transaction. The acquisition of Relativity is consistent with Micro Focus's strategy of acquiring companies that complement our core areas of expertise and where significant synergies can be derived."
Enquiries:
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Micro Focus |
Tel: +44 (0)1635 32646 |
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Chief Executive, Stephen Kelly |
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Chief Financial Officer, Nick Bray |
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IR Director, Tim Brill |
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Financial Dynamics |
Tel: +44 (0)20 7831 3113 |
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Charles Palmer/Haya Chelhot/Hazel Stevenson |
About Micro Focus
Micro Focus (LSE: MCRO.L), is a London Stock Exchange-listed software company headquartered in the UK which provides innovative software that allows companies to dramatically improve the business value of their enterprise applications. Micro Focus Enterprise Application Modernization and Management software enables customers' business applications to respond rapidly to market changes and embrace modern architectures with reduced cost and risk. For additional information please visit www.microfocus.com
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