This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Attachmate Buys Novell For $2.2 Billion

WALTHAM, Mass. ( TheStreet) -- After months of speculation and rumor, the great Novell (NOVL) selloff is finally happening, with business software specialist Attachmate grabbing most of IT in a $2.2 billion acquisition.

The deal, which is valued at $6.10 a share, is expected to close in the first quarter of 2011. Novell also announced that it has entered into an agreement to sell some of its intellectual property to CPTN Holdings, a consortium run by rival Microsoft (MSFT - Get Report), for $450 million in cash.

Novell, with also competes with Oracle (ORCL - Get Report), has been on the block since earlier this year, when hedge fund Elliott Associates made an unsolicited bid of $5.75 a share. Novell rejected the offer, which it described as undervaluing the company. The Novell board, however, said that it was exploring alternative strategies, including a return of capital to shareholders and selling the company.

"Our board of directors concluded that the best available alternative was the combination of a merger with Attachmate Corporation and a sale of certain intellectual property assets to the consortium," explained Novell CEO Ron Hovsepian, in a statement released on Monday. "We are pleased that these transactions appropriately recognize the value of Novell's relationships, technology and solutions, while providing our stockholders with an attractive cash premium for their investment."

The merger agreement with privately-held Attachmate caps months of speculation about Novell's future. The company's stock plummeted recently on worries that it was struggling to close a deal to sell its NetWare product, and the Wall Street Journal also reported that VMware (VMW - Get Report) was in advanced talks to buy Novell's SUSE Linux operating system.

When the transaction closes, Attachmate plans to operate the software maker as two business units: Novell and SUSE. Attachmate also plans to join these units with both itself and its NetIQ business, which focuses on systems and security management.

Novell shares climbed 35 cents, or 6.26%, to $5.94, shortly after market open, despite a modest dip in tech stocks that saw the Nasdaq slip 0.11%.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MSFT $50.61 1.50%
ORCL $40.29 1.10%
VMW $57.31 0.70%
AAPL $93.66 -0.09%
FB $118.58 0.85%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs