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$40.7 million, 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$3.0 million and its gross assets as at 31 December 2006 were US$13.1 million.
About Software Equity Group (SEG)
Software Equity Group is an investment bank and M&A advisory serving the software and technology sectors. Founded in 1992, the firm provides both sell-side and buy-side representation to privately-held companies, U.S. and foreign public companies, and several of the world’s leading private equity firms. SEG has advised and guided software and technology companies in the United States, Canada, Europe, Asia Pacific, Africa and Israel. The firm’s quarterly Software Industry Equity Reports are read by some 15,000 software industry executives, entrepreneurs and equity investors. For more information, visit www.softwareequity.com.
About Micro Focus
Micro Focus, a member of the FTSE 250, provides innovative software that allows companies to dramatically improve the business value of their enterprise applications. Micro Focus Enterprise Application Modernization and Management software enables customers’ business applications to respond rapidly to market changes and embrace modern architectures with reduced cost and risk.
About Acucorp Inc.
Acucorp provides innovative technologies for the modernization and enhancement of business-critical applications. In addition to both modernizing and enhancing existing assets, Acucorp’s innovative software solutions provide interoperability and portability to more than 600 different computing platforms. The company, founded in 1988, has headquarters in San Diego, California, regional offices throughout Europe and distributors around the world.