Micro Focus Acquires Acucorp

Publicly-traded Micro Focus’s acquisition of Acucorp expands Micro Focus’s market to small and mid-sized companies.

Client Description

The company

Acucorp Inc., a provider of innovative technologies for the modernization and enhancement of business-critical COBOL applications.

Buyer Description

The company

Micro Focus (Micro Focus; LSE: MCRO.L), a leader in enterprise application management and modernization solutions.

Discover more SEG Success Stories

PRESS RELEASE OVERVIEW

Software Equity Group’s Client Acucorp, Inc. Acquired by MicroFocus

San Diego, CA, May 4, 2007 – Software Equity Group, LLC (SEG), a leading software industry investment bank and M&A advisory, announced today the sale of its client, Acucorp Inc., a provider of innovative technologies for the modernization and enhancement of business-critical COBOL applications, to Micro Focus (Micro Focus; LSE: MCRO.L), a leader in enterprise application management and modernization solutions. The reported purchase price consisted of total cash consideration of US$40.7m, paid in full on completion, plus a working capital adjustment capped at a maximum value of US$250,000.

Acucorp’s technology is highly complementary to Micro Focus’ core business and the acquisition provides the opportunity for Micro Focus to expand its reach into the small- and medium-sized enterprise (“SME”) market. In the year to December 2006, Acucorp generated an operating profit of US$3.0m and its gross assets as at 31 December 2006 were US$13.1m.

Read full press release