Jack Messman, already a member of Novell's board, will become the new CEO of Novell.
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Novell to buy Cambridge Tech
By Ted Griffith, CBS.MarketWatch.com
Last Update: 6:24 PM ET Mar 12, 2001
PROVO, Utah (CBS.MW) - Software maker Novell Inc. will buy high-tech consultant Cambridge Technology Partners for about $266 million in Novell's stock, the companies announced after the close of trading Monday.
The companies also said that Cambridge Technology CEO Jack Messman, already a member of Novell's board, will become the new CEO of Novell. The company's current CEO, Eric Schmidt, will continue as chairman.
Under terms of the deal, Novell will exchange .668 shares of Novell stock for every outstanding share of Cambridge. The deal is worth about $266 million, based on Novell's closing price of $6.06 on Friday. The companies' boards have approved the deal, but it still needs the approval of Cambridge Technology shareholders. Cambridge Technology would become a wholly owned subsidiary of Novell, the companies said.
Ahead of the announcement, shares of Novell (NOVL: news, msgs, alerts) fell 25 cents to $5.81 during Monday's regular session. Shares of Cambridge Technology (CATP: news, msgs, alerts) dropped 22 cents to $3.09.
Provo, Utah-based Novell said the acquisition significantly expands Novell's ability to deliver consulting support to customers. Founded in 1991 and based in Cambridge, Mass., Cambridge Technology Partners has 3,400 employees and offices in 19 countries.
"This is exactly what's needed to propel Novell into a new realm of solutions-based relationships with customers and partners," Schmidt said in a statement. "The combined talent of Novell and Cambridge will bring us closer than ever to capturing the value of Novell's net services strategy." |
