Golden Gate Capital Purchases Micro Focus Division From Merant
SAN FRANCISCO, CA (August 14, 2001) -Golden Gate Capital, a private equity fund based in San Francisco, California, announced today that it has purchased the Micro Focus Division of Merant, PLC (London Stock Exchange: MRN; Nasdaq:MRNT). Joining Golden Gate Capital in this transaction was Parallax Capital Partners based in Irvine, California.
Micro Focus is the market leader in providing software products to Global 2000 companies for the purpose of developing, maintaining, and extending the life of their legacy COBOL applications. COBOL has the largest development base of any programming language in the world with many of the world’s largest enterprises relying on COBOL based applications for their mission critical systems. For nearly 25 years, Micro Focus has been the dominant brand name for COBOL development tools. In recent years, Micro Focus has broadened its product line to include tools that enable enterprises to cost-effectively extend the life and functionality of their existing legacy applications. Micro Focus has over 450 employees and fiscal year 2001 revenues of approximately $120 million.
Tony Hill, Micro Focus’ Chief Executive Officer, states: “This is a great opportunity for our customers and employees. The Micro Focus name is synonymous with leadership in COBOL development throughout the world. Furthermore, our product offerings allow our customer base to seamlessly transform their existing COBOL assets into today’s Java and web-based environments. With this transaction we now have the ability to singularly focus on driving the success of our customers and growing a strong and profitable business. Our partnership with Golden Gate Capital and Parallax gives us the financial foundation to invest in our core technology and expand our business through product development and acquisitions.”
David Dominik, a Managing Director of Golden Gate Capital, comments: “In this cost-constrained, profit-focused, economic environment Micro Focus is particularly well positioned as their products and solutions allow enterprises to cost-effectively leverage and extend the capabilities of their existing software assets. We are excited to partner with the Micro Focus management team in liberating this exceptional company. Micro Focus fits our strategy of partnering with world class management teams to capitalize upon the rapidly evolving world of information technology.”
About the investors: Golden Gate Capital is a San Francisco-based private equity firm with approximately $700 million of capital under management. Golden Gate Capital’s strategy is to partner with exceptional management teams to pursue change-intensive, growth investments in companies that are exploiting the forces of change in technology and the broader economy. Partnering with Golden Gate Capital on this transaction is Parallax Capital Partners, an Irvine-based, private equity firm that focuses on software investments.