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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Jetta who wrote (44972)	12/14/1999 8:44:00 PM
From: SalmonMan	Read Replies (1) \| Respond to of 108040

Fantastic comments on CRYS/Mainsoft in today's Jerusalem Post News: Crystal to acquire 51% of California's Mainsoft By Eli Groner JERUSALEM (December 15) - Crystal Systems Solutions Ltd. said late Monday it has signed an agreement to acquire a 51 percent stake in closely held Mainsoft Corp. of San Jose, California, a move it said will reduce its development costs and the time it takes to bring new products onto the market. Under the agreement, Crystal will spend up to $22.5 million for control of Mainsoft, with an initial consideration of $10m. in cash. It said the total price tag of the acquisition might increase upon the fulfillment of certain terms and conditions. Mainsoft develops and markets a Windows platform allowing Windows applications to run natively on Unix and Linux systems. By using Mainsoft's Windows platform for Unix, Crystal said it will will dramatically reduce development costs and improve its time-to-market for its software-renovation solutions. "We think that this is an almost limitless opportunity," said Crystal chief financial officer Iris Yahal, adding that she believes Mainsoft has been poorly managed. She said the natural synergy of the two companies could lead to the tapping of an "unattended-to" market. "With this acquisition Crystal takes a great step toward positioning itself as a specialized cross-platform software solutions provider. Our extended capability with multi-platform conversion and migration technologies will address the existing needs of our current and future customers," Gad Goldstein, Crystal's chairman, said in a statement.. Shares in Crystal, a unit of Formula Systems ltd., reacted very positively to the deal, climbing by 38 percent on Monday. But by midday yesterday, the shares had re-traced much of their gains, falling to $17.50. Mainsoft targets its products to companies and independent software vendors (ISVs). Mainsoft's customers include Fortune 500 enterprises such as Microsoft Corp., Computer Associates International, Rational Software Corp., Cadence Design Systems, and Bridge Information Technologies Inc.