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Attachmate acquiring Novell for $2.2 billion

By Associated Press | Posted - Nov. 22, 2010 at 11:10 a.m.



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WALTHAM, Mass. (AP) - Business software maker Novell Inc. said Monday it has found a new suitor to take over the company after rejecting a lower offer from a private equity firm earlier this year.

Novell, based in Waltham, Mass., said Attachmate Corp. has agreed to pay about $2.2 billion in cash, or $6.10 per share.

That tops an offer of $5.75 per share that Elliott Associates L.P. made back in March, a bid that valued the company at about $2 billion. Messages left with Elliott Associates were not immediately returned Monday.

The new offer represents a premium of 27 percent over Novell's closing share price of $4.80 on March 1, the day before Elliott Associates made its offer.

Novell shares climbed 37 cents, or 6.6 percent, to $5.96 in morning trading.

Attachmate, based in Seattle, is owned by private equity firms Francisco Partners, Golden Gate Capital and Thoma Bravo.

(Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Associated Press

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