Feeds

Mystery rival forces Borland bidding war

Thrice the offer

Boost IT visibility and business value

A bidding war over tools pioneer Borland Software has broken out between MicroFocus and a mystery rival.

MicroFocus has been forced to bump up its proposed purchase price for Borland for the second time, going 50 per cent over its initial offer of $1.00 per share, or $75m. MicroFocus will now offer $1.50 a share, or $113m.

Application-lifecycle-management specialist MicroFocus upped its offer following an "indication of interest from another party." It's not clear whether it's the same party that also made an offer in June - an move that saw MicroFocus increase its bid to $1.15, or $88m.

MicroFocus has pinned its future on Borland's ALM in a deal it called the "next logical stage" in its growth. The company wants to dive deeper into application testing and software quality. MicroFocus currently serves this with its Data Express product and has announced its plan to buy Compuware's application-testing business for $80m.

Borland will provide MicroFocus with tools and consoles for visual modeling and design, requirements definition and management, and change management.

According to MicroFocus, its offer for Borland is "based on strong strategic rationale and is therefore in the best interests of both companies, their employees, customers and shareholders."

The offer has been unanimously recommended by the board of Borland to its shareholders, who are schedule to meet on July 17 to vote on the proposed deal.

The tools part of the Borland, where the company made its name in Rapid Application Development in the 1980s and early 1990s with the ground-breaking TurboPascal and Turbo C that challenged Microsoft, have already been sold to Embarcadero Technologies in a deal priced $23m. The ALM suite MicroFocus is chasing was an early 2000s strategy that failed to gel for Borland. ®

The essential guide to IT transformation

More from The Register

next story
Intel's Raspberry Pi rival Galileo can now run Windows
Behold the Internet of Things. Wintel Things
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Munich considers dumping Linux for ... GULP ... Windows!
Give a penguinista a hug, the Outlook's not good for open source's poster child
Microsoft cries UNINSTALL in the wake of Blue Screens of Death™
Cache crash causes contained choloric calamity
Eat up Martha! Microsoft slings handwriting recog into OneNote on Android
Freehand input on non-Windows kit for the first time
Linux kernel devs made to finger their dongles before contributing code
Two-factor auth enabled for Kernel.org repositories
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.