Micro Focus has announced an increase in its cash offer for Borland Software after a third party briefly entered the scene and made an attempt to acquire the once-prominent tool maker.
The board of Micro Focus International on June 18 announced that it has increased its cash offer to $1.15 for each outstanding Borland share. This values the acquisition of Borland's equity at approximately $88 million.
On May 6, when Borland and Micro Focus announced plans to merge, Micro Focus was offering $1.00 for each Borland share, which had a value of around $75 million. However, on June 1, a third party entered the scene with an offer to pay $1.20 per share for the Borland shares.
In a press statement on the new offer, Micro Focus said, "Further to the announcement made on 1 June 2009, the financial buyer that made a preliminary non-binding indication of interest for Borland Software Corporation has withdrawn from the process."
Also in a statement, Stephen Kelly, CEO of Micro Focus, said, "Both companies are fully focused on completing the transaction, which we believe is based on strong strategic rationale and is therefore in the best interests of both companies, their shareholders, employees and customers."