Completion of acquisition of Orbix, Orbacus and Artix software product lines from Progress Software Corporation
Further to the announcement on 24 December 2012, Micro Focus International plc ("Micro Focus", "the Company" or "the Group", LSE: MCRO.L) confirms that on 15 February 2013 one of its subsidiaries completed the acquisition of intellectual property and other assets, and the assumption of certain liabilities associated with the Orbix, Orbacus and Artix software product lines, from Progress Software Corporation ("Progress") for a total consideration of $15m. The consideration has been satisfied in cash using Micro Focus' existing banking facility.
Completion of the acquisition was delayed from 21 January 2013 awaiting certain contractual consents. Micro Focus now anticipates that the acquisition will contribute approximately $3m of revenue in the period from completion to 30 April 2013. For the financial year commencing 1 May 2013 Micro Focus 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%. The acquisition is expected to meet Micro Focus' tight financial parameters for acquisitions, and to be earnings enhancing in the current and future financial years.
Micro Focus also announces that its Q3 Interim Management Statement for the period from 31 October 2012 to 20 February 2013 will be issued on Thursday 21 February 2013.