Sybase has announced that it has signed an agreement to acquire New Era of Networks (NEON) in a stock-for-stock transaction valued at approximately US$373 million.
According to Sybase, the acquisition, which is likely to be completed in the second quarter of 2001, is intended to significantly advance Sybase’s strategy to provide the most advanced, complete, integrated e-Business solutions for doing business on the Web.
The agreement to acquire NEON comes four weeks after Sybase announced record earnings, and rounds-out a three-year re-engineering effort that has transformed the company from a database supplier to a fully integrated provider of e-Business solutions.
Under the terms of the agreement, each share of NEON common stock will be converted into 0.3878 shares of Sybase common stock. This is said to represent an implied offer price per share of $ 9.50, and results in a net purchase price of approximately $373 million, based on the $24.50 per share closing price of Sybase common stock on February 20, 2001.
The transaction is expected to be completed in the second quarter of Sybase’s fiscal year 2001, pending governmental approval. The company believes that the transaction will be accretive to earnings in fiscal year 2002.
Upon completion of the acquisition, Sybase plans to create a new e-Business Division, integrating NEON and elements of its product lines and offerings with Sybase’s flagship Enterprise Portal (EP) solution.