Micro Focus International (LSE: MCRO) announced that it had agreed to acquire Nasdaq listed NetManage Inc for US$7.20 per share, valuing the US software company at US$73.3 million.
NetManage provides software that allows companies to "transform core applications into new Web-based business solutions". The acquisition price is a 73% premium to the share price of Netmanage on the day before the announcement. Micro Focus added that the offer price included a minimum of US$25 million in cash on NetManage's balance sheet.
"The Board of Micro Focus believes that combining the businesses of Micro Focus and NetManage will further strengthen Micro Focus's position as a leading player in the fast growing, highly fragmented Application Modernisation market." the Company said.
In a separate announcement, Micro Focus confirmed that trading was ahead of expectations for the 12 months to April 30th, 2008.
Shares in Mirco Focus climbed 10% to 258 pence valuing the group at £516 million.
Micro Focus snaps up Nasdaq listed Netmanage Inc
Published: 10:56 01 May 2008 BST