Micro Focus has acquired Borland in a $75m deal and also pickedup the application testing and automated software quality business of Compuwarein a move that will strengthen its position in that market.
The acquisitions come on the back of a strong fourth quarterfor the British based Micro Focus which stated its intention to grow throughacquisition after running a strategic review back in 2006, which has alreadyseen it pick up five companies.
Both of the deals are being self financed with Micro Focusable to lean on a three year revolving credit facility of $175m and it isexpected to shortly announce numbers for its Q4 showing increases in bothrevenue and profit.
The Borland deal will provide greater exposure to the US market and bolsterthe ambitions to take a major slice of the application testing market. For its last financial year Borland made pre-taxlosses of $204m.
Stephen Kelly, CEO at Micro Focus, said it had been able togrow organically but the Borland deal would provide it with more breadth.
“I am confident that our successful track record ineffectively integrating acquisitions over the last three years equips us wellto deliver value to shareholders from this transaction,” he said.
He added that it had also made the move to buy Compuware addedto an area where it was already carving out a name in the market.
“Acquiring the Compuware Testing and ASQ business is alogical extension to our existing application management proposition, and wesee strong growth potential in this market,” he said.
Compuware’s decision to make an $80m divestment of itsquality testing business will impact 330 employees and was described bypresident and CEO Bob Paul as a way of improving the focus on its corebusiness.
If given the required approval the deals should both close in the next few months.