Tibco to acquire Staffware for £122.8m
22 April 2004 | 7849 views | 0
California-based Tibco Software has made a recommended bid to acquire UK business process management vendor Staffware in a cash and share offer worth £122.8 million.
The deal values Staffware shares at 840 pence - 41% above the firm's closing price yesterday. Staffware shareholders will receive 504 pence in cash and 0.6902 new Tibco share for each share. Shareholders will also retain the five pence final dividend.
The deal brings together Tibco's expertise in middleware with Staffware's workflow capabilities - effectively propelling both companies further into the coveted business process management (BPM) space.
Tibco says the acquisition will increase its distribution capabilities through the cross-selling of products in new markets.
In a statement, Vivek Ranadive, chairman and CEO of Tibco, says: "The combination with Staffware will provide TIBCO with immediate additional reach into new and emerging markets including retail banking, insurance, public sector and telecommunications, as well as increased geographic presence within Europe and Asia Pacific."
The company says it will develop and support Staffware's iProcess product.
Commenting on the deal, John O'Connell, chairman and CEO of Staffware, says: "Having actively considered a number of alternative strategies for Staffware, in particular, to achieve sufficient scale in the US market, we believe that Tibco's Offer provides attractive value for Staffware's shareholders without the potential costs and risks associated with the significant investment that would otherwise be required in our North American business."
Shares in Staffware surged 35% to 810 pence this morning following the announcement.