Novell has finally ended the rumours surrounding its future, announcing an immediate acquisition by Attachmate Corporation in a deal valued at around $2.2 billion.
The deal values the workload management, networking, and Linux firm at $6.10 per share – around a nine per cent premium on the company’s current trading value.
Ron Hovsepian, Novell’s president and chief executive, said of the deal: “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. 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.”
The news also came with an announcement of the sale of said ‘certain intellectual property assets’ to CPTN Holdings LLC, a technology consortium lead by Microsoft for a one-off $450 million cash payment. It’s not yet known what assets are referred to by the deal.
A “very excited” chief executive, Jeff Hawn said the transaction “greatly complements” Attachmate’s existing portfolio.
“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 proclaimed. “We fully support Novell’s commitment to its customers and we look forward to continuing to invest for the benefit of Novell’s customers and partners.”
Attachmate has confirmed plans to operate Novell as two separate business units, Novell – which will specialise in workload management – and SUSE – which will comprise the company’s Linux arm.
The announcement finally addresses what Novell’s general manager for open platform solutions Markus Rex described to THINQ as “the big elephant in the room” during his recent interview, and leaves the future of the company on somewhat firmer footing than in recent times.Leave a comment on this article