Attachmate, a software giant and private enterprise operating in the state of Washington has made known its desire of acquiring Novell. The private enterprise is hoping to acquire Novell for a figure not exceeding 2.2 billion US dollars.
It is now a very common practice to see big enterprises such as the likes of Microsoft, IBM and Google wooing software developing companies with huge sums of money, which are sometimes more than a 50 percent valuation over the premium of their present share values. However, the figure being put forward by Attachmate as its acquisition bid for Novell, Inc. is of a significantly lower valuation.
The 2.2 billion dollars Attachmate is placing on the table is calculated at a share price of $6.10, representing just a mere 8.9 percent value over the $5.60 price at which the company share price stood before Attachmate’s announcement. The software giant is offering to make a straight cash payment if the acquisition bid is accepted.
The deal would also involve the acquisition of some of Novell’s key software technologies by a consortium, CPTN Holdings LLC, which is being led by Microsoft. Novell and Microsoft have had recent areas of collaboration despite frequent legal clashes. The cash deal for the purchase of the intellectual property is to cost around 450 million U.S dollars.
Novell largely develops management and security software, most of which are widely used on Windows desktop machines. The company also develops enterprise solutions for Linux and other patented OS, which it deploys and provides the necessary support for. Some of these include the SUSE Linux Server and the successor to the previous Novell NetWare, Open Enterprise Server.
When acquired, Attachmate is to treat Novell and SUSE as two separate units. The first will concentrate on developing a wider range of IT solutions, while SUSE will be concerned with the further development of the operating system.
Novell have indicated the positive consideration of the acquisition move by Attachmate. According to Novell’s Chief Executive and Company President, Ron Hovsepian, the merger with Attachmate and the sale of certain technologies to the consortium CPTN Holdings LLC, would have a positive influence on the company’s stock value. The move is seen as a progressive alternative for moving the software company forward. The involved companies were also commended for displaying the right level of respect for every facet that concerned Novell and shareholders are to enjoy a very good cash premium in the deal.
Attachmate is the largest technology company in the state of Washington that is privately owned. The acquisition of Novell will spread its reach to Massachusetts, where Novell presently operates from. Some of the major investors in Attachmate Corp include Golden Gate Capital, Francisco Partners and Thoma Bravo.