Micro Focus Acquires Acucorp

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

Acucorp-Pamela-Coker
Pamela Coker, President & CEO

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.

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.

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