By Lisa Kerner
Charlotte, N.C., Dec. 17 - Rocket Software, Inc. agreed to acquire NetManage, Inc. for $7.20 per share in a deal valued at $69 million.
The per-share price is a 95% premium over the $3.69 closing share price of NetManage's common stock on Dec. 11, according to a news release.
Both companies' boards of directors have approved the transaction, which is slated to close in February.
The acquisition is subject to completion of due diligence by Rocket and Rocket's ability to successfully obtain financing for the transaction.
"NetManage, with its leading number of customers and impressive product portfolio, was particularly attractive to us from an acquisition standpoint," Rocket chief executive officer Andrew Youniss said in the release.
"We continue to acquire market-leading products as part of our growth strategy and NetManage fits perfectly into our comprehensive set of solutions."
NetManage is Cupertino, Calif., software company.
Rocket is a privately held software development company based in Newton, Mass.
| Acquirer: | Rocket Software, Inc.
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| Target: | NetManage, Inc.
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| Announcement date: | Dec. 17
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| Transaction total: | $69 million
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| Price per share: | $7.20
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| Expected closing: | February 2008
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| Stock price of target: | Nasdaq: NETM: $6.60 on Dec. 14
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