|
NetIQ to merge with rival
|
 |
February 28, 2000: 2:47 p.m. ET
Network software maker joins Mission Critical Software in $1.42B stock deal
|
NEW YORK (CNNfn) - NetIQ Corp., a maker of software that helps to identify network problems, agreed Monday to merge with rival Mission Critical Software Inc. in a stock swap valued at $1.42 billion.
Mission Critical (MCSW: Research, Estimates) shareholders will receive 0.9413 share of NetIQ (NTIQ: Research, Estimates) in exchange for each Mission Critical share - for a premium of roughly 11 percent from Friday's closing prices.
But Wall Street soured on the deal Monday. Shares of NetIQ fell 5, or nearly 7 percent, to 68-1/2 in afternoon Nasdaq trading, and shares of Mission Critical Software shed 1/4 to 62.
Each company's shareholders will receive stock equal to about 50 percent of the new company, whose new name and stock symbol will be chosen later. The deal is expected to close during the June quarter, pending regulatory approval.
Michael Bennett, Mission Critical chairman, president and
CEO, will be executive chairman of the merged companies and Ching-Fa Hwang, NetIQ president and CEO, will be chief executive.
The combined company will provide application performance monitoring and administration tools -- for use mainly with the Windows NT platform -- to application service providers and various e-businesses. Mission Critical makes software that helps stave off hacker attacks.
"E-commerce is an increasingly pervasive element of our economy," Bennett said, "and e-business infrastructure management has become a critical component for success. Windows 2000 is clearly poised to be a platform of choice for the new era of e-business and, with this transaction, the combined company will be positioned to deliver comprehensive and scalable solutions...for customers."
Separately, Mission Critical also agreed to acquire privately held provider of performance management software Ganymede Software Inc., for stock valued at $171.2 million. 
|
|
|
|
|
 |
|
