Micro Focus Will Merge With the Attachmate Group

Date 2014/9/15 1:44:16 | Topic: Company News

Micro Focus International announced that it has reached agreement on the terms of a merger with the Attachmate Group. The Enlarged Group will be a leading global infrastructure software company with combined revenues of $1.4 billion*, Underlying Adjusted EBITDA of $0.5 billion* and operations in all major geographies, combining the talents of more than 4,500 employees.
The Merger represents a significant increase in the scale and breadth of Micro Focus, combining Micro Focus' strong product franchises with the Attachmate Group product portfolios serving adjacent and complementary market segments. The Enlarged Group would benefit from a top three global market position in a number of key segments, including off-mainframe COBOL, mainframe modernisation, host connectivity and Linux operating systems.

Commenting on the proposed Merger, Kevin Loosemore, Executive Chairman, Micro Focus, said: "There is compelling rationale behind this Merger. Both companies are well established enterprise software vendors operating at a global scale with a presence in all significant international markets. Both hold a portfolio of software solutions which address specific aspects of the infrastructure software requirements of a substantial installed base of large enterprise customers, with no material customer concentration or direct overlap; and both Attachmate and Micro Focus' respective product groups are predominantly mature solution sets which are embedded within the IT infrastructures of large corporate customers."

"The Board believes that the Merger will deliver a more attractive and expanded product offer to customers. The Enlarged Group will provide choices as organisations address increasingly complex IT challenges and strive to preserve business logic and data as they bridge from the old and the new to exploit new technology trends, such as the cloud or mobility", continued Loosemore. "The Board believes that the proposed Merger presents a rare opportunity to achieve a significant increase in the scale and breadth of Micro Focus, with the potential to deliver shareholder returns that are superior to those likely to be achieved on an organic basis."

"The merger of the Attachmate Group with Micro Focus will result in a greater breadth of solutions, extensive global presence, and significant financial strength," said Jeff Hawn, Chairman and Chief Executive Officer of the Attachmate Group. "The combined company will be even better able to help customers address their business and IT challenges in light of increasing complexity, change and risk."



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