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Attachmate Buying Novell for $2.2 billion: Software provider Novell Inc. (NOVL.O) said it has agreed to be bought by a private company Attachmate Corp. for $ 2.2 billion in a deal which also involves the sale of certain assets to a consortium led Novell Microsoft Corp. (MSFT)
Novell's share rose 6.5 percent to $ 5.96 after the news on Monday, but were still below the transaction value of $ 6.10 per share.
The agreement follows the release of Novell in March of an unsolicited proposal from Elliott Associates to buy Novell for $ 5.75 per share. After the board rejected the offer Novell conducted an auction process that attracted several rounds of bidding that has dragged on for months.
"The Commission has considered all the alternatives ... and found this to be the best value for our shareholders," including the ability to remain independent, Novell CEO Ron Hovsepian told Reuters in a telephone interview.
Novell says the value of $ 2.2 billion agreement provides for the concurrent sale of certain intellectual property assets for $ 450 million to a consortium known as Microsoft CPTN Holdings.
Both transactions are expected to close in the first quarter of next year. The Attachmate / Novell deal needs the approval of regulators and shareholders of Novell. The sale of intellectual property is also subject to the closing of the merger Attachmate and regulatory approval, Novell said.
Novell said the share price of $ 6.10 represents a premium of 28 per cent of its closing price of the action on March 2, just before the release of Elliott Associates offers.
Attachmate, a provider of technology services, is owned by an investor group led by Francisco Partners, Golden Gate Capital and Thoma Bravo.
Attachmate plans to operate two units as Novell, Novell and SUSE, and its involvement with other NetIQ and expects that the company created to have revenues of approximately $ 1 billion per year.
Jeff Hawn, CEO of Attachmate, said his company expects to generate savings as a result of the agreement, including the possibility of some redundancies, but declined to give details.
JP Morgan was the financial advisor and Skadden Arps Novell, Slate, Meagher & Flom was legal counsel in the agreement. Attachmate used Credit Suisse and RBC Capital Markets as financial advisor and Jones Day as legal counsel.
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