AttachmateWRQ announced that it will acquire security solutions provider NetIQ for approximately $495 million in cash, which equates to about $12.20 per share of stock. NetIQ, founded in 1995, will no longer be publically traded. Instead the company will become a business unit of AttachmateWRQ. The transactiton is expected to close within 90 days.
Attachmate acquired WRQ in 2005, maker of terminal emulation, X Server, and SecureShell (SSH) solutions. During that acquisition the combined companies were renamed AttachmateWRQ, which is owned by an investment group led by Golden Gate Capital, Francisco Partners, and Thoma Cressey Equity Partners.
After the NetIQ acquisition is complete the combined companies will be renamed again, this time to Attachmate-NetIQ, and the new business unit will be based in Houston, Texas. NetIQ said that the newly formed Attachmate-NetIQ will serve over 40,000 customers in over 60 countries.
"The combination of AttachmateWRQ and NetIQ creates a formidable enterprise software company with greater resources and scale," said Jeff Hawn, chairman, president and CEO at AttachmateWRQ. "Together, we are well-positioned to better serve our combined customer base with more products and resources than ever before."
NetIQ built a significant portion of its portfolio of offerings through acquisitions of its own, including PentaSafe, WebTrends, Mission Critical Software, and Marshall Software, as well as the WebPosition product line and business of First Place Software and the assets of Subquery Innovations.