The company started in 1969 in Texas as Agency Records Control, a card tabulating service bureau for independent agents.It also has offices in Pulaski, Tennessee; Atlanta, Georgia; East Lansing Michigan; Boulder, Colorado; Winsor, Connecticut; Woodland Hills, California.
Attachmate 2015 Guide Full Potential OfOur focus will continue to be on delivering value to customers so that they can realize the full potential of their business.![]() Figuring out 2021 Employee Benefits Get a Quote from ALLtech GeekWires coverage this week is underwritten by ALLtech. With exclusive pricing from preferred carriers like Regence and Delta Dental, ALLtech provides the most competitive, cost-effective plans available, tailored specifically for small technology businesses. If you have any questions or suggestions regarding the accessibility of this site, please contact us. Any use, including reproduction requires our written permission. All copyright requests should be addressed to copyrightiso.org. Quickly create professional interfaces in a point-and-click, drag-and-drop manner. The combination will create a software giant with just under 1.4 billion in sales and 34,000 customers between the two of them. But it was always assumed that the private equity owners who had assembled the Attachmate conglomerate over the past decade would want to cash out someday and in a big way as they have done with this deal. Those equity partners include Golden Gate Capital, which owned a majority stake in Micro Focus after its initial public offering back in 2005, and was the biggest shareholder in Attachmate with a 31.5 percent piece. The company divested its Micro Focus holdings in 2009.) Francisco Partners has a 29.9 percent stake of Attachmate, followed by Thoma Bravo with 14.1 percent, Elliot Management with 13.2 percent, and management and others with 11.3 percent. After the deal is done, these combined equity partners will have a 40 percent stake in the company, which will be Micro Focus and which will still have its shares traded on the London Stock Exchange. The private equity partners bought Attachmate, predominantly a supplier of terminal emulation software for proprietary systems like IBM mainframes and midrange gear, and combined it with rival WRQ back in 2004. Then this company bought NetIQ, a provider of security software, in 2006 and five years later it acquired NetWare and SUSE Linux software maker Novell for 2.2 billion. Novell had 1 billion in cash, so Attachmate did not pay as much as you think for Novell. Micro Focus is paying more than it might appear to get control of Attachmate. The equity partners are getting 1.18 billion in shares of Micro Focus and the COBOL tool maker is assuming 1.16 billion in debt and other charges (including payouts to equity partners) for a total value of 2.35 billion. This is a fairly large chunk of change for Micro Focus, but the deal will triple its revenues and boost its earnings before income taxes by around a factor of 2.6. Attachmate 2015 Guide Series Of SmallerThere is no way that Micro Focus could accomplish such a feat with its own product lines or by doing a series of smaller acquisitions. A relatively small portion of their sales come from professional services, and license revenues for the combined company represented about a quarter of the revenue stream in a hypothetical fiscal 2014 that ended this spring. Micro Focus ends its fiscal year in April, Attachmate ends it in March.) In this fiscal 2014, the combined companies derived 70 percent of revenues from recurring deals, not license sales or professional services. The merger presents a rare opportunity to create a leading infrastructure software company with the scale and breadth to compete successfully at a global level. It provides us with a platform from which I am confident we can deliver significant and sustainable returns. The core COBOL development business is shrinking a bit1 percent in fiscal 2014and the other units are growing. This includes the Reflection, InfoConnect, Verastream, and DataBridge product lines, which together have around 4,000 customers worldwide. NetIQ application and security management software brought in 289 million in revenues and grew 1 percent, and SUSE Linux, thanks to help from the supercomputing and SAP HANA markets, grew by 9 percent to 197 million last year. Red Hat does not break out Enterprise Linux as a separate line item in its financials, but the bulk of its revenues come from Linux support contracts even to this day and it is probably selling between four and five times as much Linux support contracts as SUSE Linux. The company is among the top three vendors in most of its product categoriesit is more distant from the front of the pack in collaboration, identity management, and security tools, but these are also crowded markets. Bank of America Merrill Lynch, HSBC, RBC Capital Markets, Goldman Sachs, and Credit Suisse are ponying up the money. That debt is equivalent to a year and a third of revenues, and it is substantially larger than the mere 266.2 million that Micro Focus was carrying on its books (and that still represented more than half a years revenue). Micro Focus has committed to chopping that debt load by somewhere in the neighborhood of 500 million in the next two years after the deal closes. Micro Focus expects to have a general meeting before the end of October to vote on the deal and to close it in early November. The deal is obviously expected to be accretive to Micro Focus earnings in fiscal 2015. During that fiscal year, Micro Focus will do a detailed review of the combined businesses and invigorate product management, as the company put it. In fiscal 2016, Micro Focus will be rationalizing its legal entities and product lines, standardizing the systems that run its business, and come up with a new go-to-market model. Micro Focus has more than 1,200 employees and Attachmate has more than 3,300 and presumably there will be some redundancies here, too. ![]()
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