(By Richard Holway 9.00am 6th May 09) Steve Kelly is really making an impact at Micro Focus - about the best performing UK software stocks in the past year or so. Today, they announce not one but two sizable acquisitions:1 - the acquisition of NASDAQ-listed Borland (application testing) for $75m. At 80c per share, that's a reasonably modest 25% premium on yesterday's close.
2 - the acquisition of Compuware's Testing and ASQ Business (Application Testing / Automated Software Quality ) for $80m.
They are both cash deals funded by Micro Focus' existing resources and a new $175m loan facility.
The acquisitions fits our criteria of 'sticking to the knitting'. Although I might get a bit worried about the onset of the dreaded 'Acquisition Indigestion' if they don't slowdown a bit now to help their ingestion. Micro Focus has undertaken five acquisitions in the last couple of years before today's. But Micro Focus is building a veritable tool chest of application software development and modernisation aids. I never thought I'd see a day when a UK software company would make such moves on US businesses.
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