Attachmate Buying Novell for $2.2-Billion

Software provider Novell Inc. (NOVL-Q5.960.366.53%) said it bought Agreed To Be Held privately by Attachmate Corp. for about $ 2.2-Billion in a Deal That Also involves Novell somethings selling assets to a consortium led by Microsoft Corp. (MSFT, Q25.56, from 0.13 to 0.51%) 

Novell shares' were up 6.5 Fri cents at $ 5.96 on the news But on Monday were still below the deal value of $ 6.10 per share. 

The Agreement follows Novell's Rejection in March of an unsolicited Proposal from Elliott Associates to buy Novell for $ 5.75 per share. After it That Rejected the offer Novell board ran an auction process That drew multiple rounds of bids That dragged out over Several Months. 

"The board explored all alternatives ... and found this To Be the best value for our shareholders, "Including the option of Remaining Independent, Novell Chief Executive Officer Ron Hovsepian Told Reuters in a telephone interview. 

Novell said the $ 2.2-Billion Deal Includes value of ITS concurrent sale of somethings Intellectual Property Assets for $ 450 Million to the Microsoft consortium known as CPTN Holdings. 

Both deals are EE Thurs close in the first quarter of next year. The Attachmate / Novell Deal Needs approval from regulators and shareholders of Novell. The IP sale is Also subject to the closing of the Merger Attachmate as well as Regulatory approval, Novell said. 

Novell said the $ 6.10 per share price represents a premium of 28 per cent Thurs ITS closing share price on March 2, just before the disclosure of the Elliott Associates offer. 

Attachmate, a provider of technology services, is owned by an investment group led by Francisco Partners, Golden Gate Capital and Thoma Bravo. 

Attachmate Plans TO OPERATE AS, two units of Novell, Novell and SuSE, along with the ITS Other holding NetIQ and expects the resulting company To Have revenue of about $ 1 Billion a year. 

Jeff Hawn, the CEO of Attachmate, said his company expects Thurs generate somethings Savings as a result of the deal, Including the Potential for "some job cuts, But They Declined to Give details. 

JP Morgan was Novell's Financial adviser and Skadden yourdomain.com A, Slate, Meagher & Flom was legal adviser of ITS in the Agreement. Attachmate used by Credit Suisse and RBC Dominion Securities as Financial Advisers and Jones Day as legal adviser.