Attachmate buying Novell for $2.2 billion

Novell is also selling certain intellectual property assets to Microsoft-led CPTN Holdings

Novell announced Monday it has agreed to be acquired by Attachmate for US$2.2 billion, ending months of speculation over its future. The deal is expected to close in the first quarter of next year.

The company has also agreed to sell certain intellectual property assets to CPTN Holdings, a technology consortium led by Microsoft, for $450 million in cash, a payment "reflected in the merger consideration to be paid by Attachmate."

Attachmate is backed by private equity firms Francisco Partners, Golden Gate Capital and Thoma Bravo. It sells software for terminal emulation, fraud detection and other purposes. The company shares many customers with Novell and its product portfolios are complementary, according to a statement.

Novell is known for SUSE Linux, data center management and virtualization software. Attachmate plans to run Novell as two separate business units, Novell and SUSE.

It was not immediately clear which of Novell's assets will be sold to the Microsoft group.

Novell's board decided to make the agreements after "a thorough review of a broad range of alternatives to enhance stockholder value," CEO Ron Hovsepian said in a statement.

Attachmate's offer of $6.10 per share follows the $5.75 a share offer made in March by investment firm Elliott Management Corporation, one of Novell's largest shareholders. Novell rejected that offer. But as part of the deal announced Monday, Elliott is to become an equity shareholder in Attachmate, according to a statement.

Join the PC World newsletter!

Error: Please check your email address.

Tags novellbusiness issuesopen sourceattachmatemergers & acquisitionsMicrosoftsoftware

Struggling for Christmas presents this year? Check out our Christmas Gift Guide for some top tech suggestions and more.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?