Micro Focus buys Borland Software

The company has also snapped up the application testing division of Compuware for $80 million

Micro Focus International plans to beef up its range of software quality assurance tools with two acquisitions it announced Wednesday.

It has agreed to buy Borland Software, a developer of application lifecycle management tools, for US$75 million, and in a separate deal has also agreed to buy Compuware's application testing and automated software quality business unit for $80 million in cash.

Borland is a shadow of its former self: in May last year it sold Codegear, its software development tools division that published JBuilder, to Embarcadero Technologies for $30 million, and in January it lost its CEO Tod Nielsen to VMware, where he became chief operating officer.

Last year it reported a net loss of $216 million on revenue of $172 million from its remaining application lifecycle management activities.

Micro Focus, a developer of enterprise application modernization and management software based in the U.K., hopes the purchases will help it to enlarge its share of the automated software quality assurance market, which it says is worth over $2 billion annually.

Buying Borland will allow Micro Focus to address a broader market, and bring it new customers, particularly in the U.S., the company said.

It also expects to be able to cut costs significantly by eliminating duplication in the two companies' back-office functions and IT systems.

As for the Compuware products Micro Focus is buying, it will sell those alongside its existing automated software quality product, Data Express.

From last April through this March, Compuware generated around $74 million in revenue and $5 million in pretax profit from its application testing and automated software quality business, Micro Focus said.

Borland has the approval of both companies' boards of directors, but must still win over regulators and its own and Borland's shareholders.

It expects to complete the Compuserve deal by the end of June, and the Borland acquisition late this quarter or early next.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags micro focusborlandmergers & acquistions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Peter Sayer

Peter Sayer

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?