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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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.
Who is the richest person in the world?
The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
By Vaishali Varu Published
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
By Ruth Emery Published