, a provider of storage software, announced two acquisitions Thursday, agreeing to buy
Precise Software Solutions
for about $537 million and privately held
for $62 million in cash.
News of the acquisition promptly pushed shares of Precise up 37% to $16.53, a gain of $4.48, but Veritas shares lost 42 cents, or 2.4%, to $16.87 in midday trading.
Precise, of Westwood, Mass., supplies software that monitors and manages data. Sunnyvale, Calif.-based Jareva's software products help businesses reduce their IT costs by automating common tasks and making more efficient use of server hardware.
According to Veritas, the acquisition of Precise is valued at $16.50 per share of Precise stock, for a fully diluted consideration of approximately $537 million. Taking into account Precise's current cash position, the enterprise value is approximately $400 million. Precise shareholders will receive $16.50 in cash and, if they elect, their consideration in up to 25% Veritas stock, with the remainder being paid in cash.
"Precise Software Solutions is a strategic acquisition for our business," said Veritas CEO Gary Bloom.