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Platinum Software Buys DataWorks for $93.4 Million
Irvine, California, Oct. 13 (Bloomberg) -- Platinum Software Corp. agreed to buy DataWorks Corp. for about $93.4 million, or $6.49 a share, to expand as a supplier of management software to mid-sized companies.
Under the terms of the transaction, Platinum Software will issue 11.5 million shares for all outstanding DataWorks shares, which closed today at 5 3/8. That represents a 21 percent premium for DataWorks shareholders based on Platinum's closing price of 8 1/8. DataWorks has about 14.39 million shares outstanding.
Platinum and DataWorks make software to streamline operations at mid-market corporations, companies with annual revenue under $500 million. Platinum said it will take an unspecified charge for the acquisition and the combined company will reduce its 2,000-employee workforce by an unspecified amount. It will have a combined customer base about of 10,000.
''We see an opportunity to accelerate our growth and build critical mass right in our own backyard,'' in Southern California, Platinum Chief Executive George Klaus said.
Platinum had 1998 earnings of $13.35 million on revenue of $98.49 million. San Diego-based DataWorks had a 1997 loss of $800,000 on revenue of $146.96 million.
The transaction was disclosed after the close of U.S. markets. |
