Micro Focus buys US rival

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The Independent Online
Micro Focus buys US rival

MICRO FOCUS, the software development group, yesterday struck a blow for UK information technology companies with the pounds 300m acquisition of INTERSOLV, its US-based rival.

Micro Focus said it had opted for an all-share merger, rather than a cash deal, because of the relative valuations of the two companies' shares. "The fact is that software companies are now more highly rated in the UK than in the US," said chief executive Martin Waters.

Analysts welcomed the deal, pointing out that Micro Focus had negotiated a good price. However, Micro Focus shares fell 67.5p to 452.5p as US investors exploited differences between the two companies' share prices.

Investment column, page 21