Micro Focus buys software product lines after delay

18th Feb 2013 07:20

Micro Focus confirmed one of its subsidiaries has acquired Orbix, Orbacus and Artix software product lines from Progress Software Corporation, following a month delay."Completion of the acquisition was delayed from January 21st 2013 awaiting certain contractual consents. Micro Focus now anticipates that the acquisition will contribute approximately $3m of revenue in the period from completion to April 30th 2013," it said. The $15m deal was made using cash from Micro Focus' existing banking facility, it said in a statement.Micro said for the financial year starting May 1st it 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%, it added. The acquisition is expected to be earnings enhancing in the current and future financial years. CJ