Micro Focus buys software product lines after delay

Micro Focus confirmed one of its subsidiaries has acquired Orbix, Orbacus and Artix software product lines from Progress Software Corporation, following a two month delay.

"Completion of the acquisition was delayed from January 21st 2013 awaiting certain contractual consents. Micro Focus now anticipates that the acquisition will contribute approximately $3m of revenue in the period from completion to April 30th 2013," it said.

The $15m deal was made using cash from Micro Focus' existing banking facility, it said in a statement.

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Micro said for the financial year starting May 1st it continues to expect that the acquired assets will contribute to the stabilisation of the Visibroker business and deliver at least $14m in revenues.

Micro Focus will manage the acquisition to deliver adjusted EBITDA margin at least in line with the group's latest reported level of 44.5%, it added.

The acquisition is expected to be earnings enhancing in the current and future financial years.

CJ