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NetIQ Agrees to Acquisition by AttachmateWRQ
[April 27, 2006]

NetIQ Agrees to Acquisition by AttachmateWRQ

Associate Editor
 
AttachmateWRQ and NetIQ Corporation have signed a definitive agreement, under which NetIQ will be acquired by AttachmateWRQ.  The deal joins two companies with complementary strategic visions and products, as well as a shared commitment to customer satisfaction. 
 
The result will be a stronger enterprise software company with increased scale, added expertise, a history of innovation and customer satisfaction and retention, all of which will better position it to for success in a growing and competitive industry.  The newly created company — which will be known as Attachmate-NetIQ — will have more than 40,000 customers in more than 60 countries, including close to 100% penetration of the Global 10,000.  

 
Both companies have enjoyed success in their respective specialties.  AttachmateWRQ develops enterprise software that allows its customers to extend, manage, and secure IT infrastructures; NetIQ helps resolve systems and security management issues by providing solutions to ensure operational integrity, manage service levels, reduce risk, and ensure policy compliance.
 
The impetus for the acquisition, which still requires approval of NetIQ shareholders and regulatory agencies, is an understanding that customers of both companies, who have come to expect quality products and service, will be even better served and will gain even greater value from the transaction.
 
“The combination of AttachmateWRQ and NetIQ creates a formidable enterprise software company with greater resources and scale,” said Jeff Hawn, chairman, president and CEO at AttachmateWRQ. “Together, we are well-positioned to better serve our combined customer base with more products and resources than ever before.”
 
In a letter to customers, the two firms stated that, “By joining forces, we have a tremendous opportunity for further growth based on our mutual strengths and experience in complex, heterogeneous IT environments.”
 
The agreement calls for AttachmateWRQ to pay $12.20 per share to NetIQ shareholders, the total value of which is estimated to be $495 million.  Once the transaction has been completed, NetIQ will become a separate business unit of AttachmateWRQ.
 
Until that time — which is expected in about three months — the two companies will continue to function as independent entities, providing sales and support to its own customer base.  The two firms are intent on preserving their usual high level of customer service throughout the acquisition process.
 
Erik Linask is Associate Editor of INTERNET TELEPHONY. Most recently, he was Managing Editor at Global Custodian, an international securities services publication. To see more of his articles, please visit Erik Linask’s columnist page.

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