Rocket Software, Inc, a privately held corporation, and NetManage, Inc (NETM), a publicly traded company, have jointly announced that both companies have signed a definitive merger agreement. According to this agreement, Rocket will acquire each outstanding share of common stock of NetManage for $7.20 per share; representing a 95% premium over the closing share price of $3.69 as of December 11, 2007.
NetManage is focused on the distribution of software that can transform current internet applications into new Web-based business solutions. NetManage allows customers to maximize investments in existing World Wide Web systems by allowing customers to leverage their current systems with new service-oriented architecture. More than 10,000 customers worldwide, including the majority of the Fortune 500, have already utilized NetManage’s products for their mission critical application integration.
Andrew Youniss, Chief Executive Officer of Rocket, stated, “NetManage, with its leading number of customers and impressive product portfolio, was particularly attractive to us from an acquisition standpoint. We continue to acquire market-leading products as part of our growth strategy and NetManage fits perfectly into our comprehensive set of solutions.”
Zvi Alon, Chairman and Chief Executive Officer of NetManage, added, “We feel confident this is the right strategy for our shareholders, customers and employees and that Rocket will continue to build on our legacy. NetManage’s specialized solutions for integrating, Web enabling, and accessing enterprise information systems will strengthen and advance Rocket’s set of offerings.”
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