Micro Focus International plc to acquire the Application Testing / AutomatedSoftware Quality business of Compuware Corporation
Micro Focus International plc (“Micro Focus”, “the Group” or “the Company”, LSE: MCRO.L), the Enterprise Application Management and Modernization software company, announces that it has reached agreement to acquire the suite of Application Testing / Automated Software Quality (ASQ) solutions and all related sales, support and development infrastructure (together being the "Compuware Testing and ASQ Business"), from Compuware Corporation (“Compuware”) for a total gross cash consideration of US$80 million.
Compuware’s Testing and ASQ Business automates quality processes within the software development function to control, measure and manage the delivery of results and to ensure process consistency and continuous improvement through sophisticated workflow capabilities. These products are highly complementary to Micro Focus’ core solutions as they address a logically adjacent portion of the software development and deployment value chain.
Background to and reasons for the Acquisition
Commenting on the acquisition, Stephen Kelly, Chief Executive Officer of Micro Focus International plc, said:
“Micro Focus sees significant value for customers and shareholders in this proposed transaction. Acquiring the Compuware Testing and ASQ business is a logical extension to our existing application management proposition, and we see strong growth potential in this market. Our successful track record of five effective integrations during the past three years equips us well to rapidly harness the benefits of this proposed acquisition.”
Bob Paul, Compuware President and Chief Operating Officer, said:
“This agreement represents a key accomplishment in Compuware’s Business Service Delivery strategy for ensuring applications work well and deliver business value. By focusing Compuware’s human, technical and financial resources on core market categories where we can be best in the world - like end-to-end application performance - Compuware will deliver more differentiated value to our customers and better bottom-line results for our investors and employees.”
Tel: +44 (0)1635 32646
Stephen Kelly, Chief Executive
Nick Bray, Chief Financial Officer
Tim Brill, Head of Corporate Communications & IR
Tel: +44 (0)20 7831 3113
Charles Palmer /Haya Chelhot/ Nicola Biles
Notes to editors:
Arma Partners LLP acted as financial adviser to Micro Focus and Updata Advisors, Inc. acted as financial adviser to Compuware. Micro Focus was advised by KPMG Corporate Finance Debt Advisory with respect to arranging the acquisition financing facilities.
No financial disclosure in this announcement is intended to be or should be taken to be an estimate of the future profits or otherwise of either Micro Focus or any part of Micro Focus Group. Any statement relating to earnings enhancement does not mean that the future earnings per share of Micro Focus will necessarily match or exceed its historical published earnings per share.
About Micro Focus
Micro Focus, a member of the FTSE 250, provides innovative software that allows companies to dramatically improve the business value of their enterprise applications. Micro Focus Enterprise Application Modernization and Management software enables customers’ business applications to respond rapidly to market changes and embrace modern architectures with reduced cost and risk. For additional information please visit www.microfocus.com
Founded in 1973, Compuware provides software, experts and best practices to ensure applications work well and deliver business value. Its unique approach, Business Service Delivery, helps CIOs optimize end-to-end application performance for leading businesses around the world, including 46 of the top 50 Fortune 500 companies. Learn more at www.compuware.com.