Novell agrees to be acquired by Attachmate Corporation for $2.2 billion

Novell agrees to be acquired by Attachmate Corporation for $2.2 billion

2010-11-22 22:59:29 GMT+7 (ICT)

WALTHAM, MASSACHUSETTS (BNO NEWS) -- Novell, Inc. on Monday announced that it has entered into a definitive merger agreement under which Attachmate Corporation will acquire Novell for approximately $2.2 billion.

According to the agreement, Attachmate Corporation will pay $6.10 per share in cash, which represents a premium of 28 percent to Novell's closing share price on March 2, the last trading day prior to the public disclosure of Elliott Associates, L.P.'s proposal to acquire all of the outstanding shares of Novell for $5.75 per share and a 9 percent premium to Novell's closing stock price on November 19.

"After a thorough review of a broad range of alternatives to enhance stockholder value, our Board of Directors concluded that the best available alternative was the combination of a merger with Attachmate Corporation and a sale of certain intellectual property assets to the consortium," said Ron Hovsepian, president and CEO of Novell.  

"We are pleased that these transactions appropriately recognize the value of Novell's relationships, technology and solutions, while providing our stockholders with an attractive cash premium for their investment," Hovsepian added.

Jeff Hawn, chairman and CEO of Attachmate Corp., said the company is very excited about the transaction. "It greatly complements our existing portfolio," he said.

Hawn said Novell has an established record of innovation, impressive technology and brand assets, and a leading ecosystem of partnerships and talented employees. "The addition of Novell to our Attachmate and NetIQ businesses will enhance the spectrum of solutions we can offer to customers," he added.

Attachmate Corporation is owned by an investment group led by Francisco Partners, Golden Gate Capital and Thoma Bravo.  

In addition, Novell also announced it has entered into a definitive agreement for the concurrent sale of certain intellectual property assets to CPTN Holdings LLC, a consortium of technology companies organized by Microsoft Corporation, for $450 million in cash, which cash payment is reflected in the merger consideration to be paid by Attachmate Corporation.

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