June 10, 2002, 12:51 PM — Novell Inc. hopes to add a third leg to its Internet-products strategy, dubbed one Net, with an offer to buy SilverStream Software Inc., a specialist in Web services application development tools, for about US$212 million.
The acquisition of SilverStream, based in Billerica, Massachusetts, will extend Novell's offerings, enabling it to help enterprises deploy advanced Web applications, the company said in a statement.
A move into the Web services market will add a third leg to Novell's one Net plans. The other two are Novell's Cambridge Technology Partners consulting division, and the cross-platform infrastructure provided by its security and directory technologies, the company said.
Both boards of directors have unanimously approved the deal, and SilverStream shareholders that hold 20.33 percent of the shares have agreed to tender their shares, Novell said. The deal requires the approval of the holders of 90 percent of the shares, and still has to clear the usual regulatory approvals, it said. If shareholders support it, the deal could close in July.
Novell plans to rebrand SilverStream's eXtend software line as its own, and SilverStream President and Chief Executive Officer David Litwack will become a senior vice-president of Novell if the deal closes.
The $212 million price tag is based on a cash offer of $9 per SilverStream share, with approximately 23.6 million shares expected to be outstanding if the deal closes in July as planned. However, the Provo, Utah, company will only have to lay out around $112 million in cash, as SilverStream is sitting on a $100 million pile of cash.
