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News > Deals
CA buying Platinum Tech
March 29, 1999: 10:49 a.m. ET

Business software deal, valued at $3.5B, triples Platinum stock value
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NEW YORK (CNNfn) - In one of the largest deals involving business software companies, Computer Associates International said Monday it will acquire all outstanding shares of Platinum Technology International for $3.5 billion.
     Islandia, N.Y.-based Computer Associates (CA) said the deal values Platinum Technology (PLAT) shares at $29.25 each. The stock closed Friday at about one-third that price, $9.875.
     The acquisition price is below Platinum's 52-week high of $34.3125, reached last July.
     Platinum, based in Oakbrook Terrace, Ill., provides software and consulting services to help corporations manage information technology. Among the applications of its software are systems and database management, e-commerce and year 2000 re-engineering.
     "This transaction provides tremendous synergies in products, markets and services with very little overlap, creating exciting opportunities for CA in many new and emerging markets," Computer Associates President Sanjay Kumar said.
     Computer Associates said the boards of both companies have approved the transaction. Credit Suisse First Boston is underwriting a $4.5 billion credit facility for the deal, replacing the company's existing $2.6 billion in credit.
     The company said it expects the acquisition to add 25 cents a share to earnings for the 12 months following completion, not including any costs for restructuring and in-process research and development. It also said it expects the acquisition to generate an additional $450 million of cash from operations.
     Computer Associates shares closed Friday at 33-15/16, down 7/8 from Thursday. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.