Micro Focus International buys stake in Progress Software Corporation

Micro Focus International announced on Monday that one of its subsidiaries has agreed to acquire a stake in Progress Software Corporation.

The company will purchase the intellectual property, assets and the assumption of liabilities associated with Progress's Orbix, Orbacus and Artix software product lines, for a total consideration of $15m.

The transaction will be paid in cash using the firm's existing banking facility and is expected to be completed by January 21st.

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Micro Focus said the product line would complement the software company's existing range and contribute to the stabilisation of the Visibroker business.

"The product lines will be maintained, developed and supported by Micro Focus going forward," the firm said in a statement.

"These product lines are used by approximately 200 enterprise customers which overlap with the Micro Focus customer base and include large multinational organisations in the telecommunications, financial services and government verticals."

Micro Focus expects the acquisition will contribute at least $4.0m of revenue in the period from completion to April 30th 2013.

The FTSE 250 company also forecast at least $14m in revenues in the year from May 2013.

Shares were up 0.18% to 571.00p at 8:50 Monday.

RD