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Micro Focus International plc (LSE: MCRO) is set to acquire San Mateo, California-based Serena Software, Inc., a leading provider of Application Lifecycle Management (ALM) software, from Silicon Valley private equity firm HGGC and Serena’s founder Doug Troxel, for $288 million. The transaction is valued at $540 million, said the company. HGGC and Troxel had acquired Serena from Silver Lake Partners in 2014. Micro Focus will raise $216 million through a placement underwritten by Numis Securities, to finance the acquisition, and pay off Serena’s debt of $252 million. The acquisition is expected to close in early May 2016, subject to receipt of competition clearances in the US and Germany. “Today’s announcement marks another significant milestone for Micro Focus, bringing together two highly complementary solution sets that enable customers to build better applications, adapt to changing business conditions more rapidly and maximize the value of existing investments to drive further innovation within their business,” said Stephen Murdoch, CEO, Micro Focus. “With Serena, we are further positioned to deliver richer solutions for the complex business demands customers are solving today – with greater reliability, predictability and less risk of failure.” “Over the past two years, we and Doug Troxel have had a fantastic and productive relationship with Serena CEO Greg Hughes and the management team,” said Rich Lawson, managing partner and CEO of HGGC, who also serves as chairman of Serena. Serena has extensive expertise in software application development, software configuration and change management, and business process management. In addition, Serena is a pioneer in processes and solutions that bridge application development and operations to create true DevOps, an increasingly critical area of focus for enterprise customers looking to develop applications and services faster, with greater accuracy and agility that fully meet business demands. “This is an exciting announcement that promises to offer substantial value to Serena customers and partners, said Greg Hughes, president and CEO of Serena. “Our complementary strengths in software development and IT Operations will only serve to provide a stronger foundation for the next-generation of applications and services they require to meet ongoing business demands.” Serena Software is the world’s largest independent Application Lifecycle Management vendor with more than 2,500 enterprise customers. Serena helps the highly regulated large enterprise move fast without breaking things – increasing velocity of the software development lifecycle while enhancing security, compliance, and performance. The company was founded in 1980 by Doug Troxel. HGGC is a leading middle-market private equity firm that was named 2014 M&A Mid-Market Private Equity Firm of the Year by Mergers & Acquisitions magazine. HGGC is based in Palo Alto, Calif., and has over $2.4 billion of cumulative capital commitments. The firm has completed nearly 50 portfolio investments with an aggregate transaction value in excess of $10 billion. HGGC is led by noted private equity executive Richard F. Lawson, Jr., who serves as CEO, former Bain Capital executive Gregory M. Benson, former Nutraceutical International (NASDAQ: NUTR) CFO Leslie M. Brown, Jr., former Citigroup (NYSE: C) CFO Gary Crittenden and NFL Hall of Fame Quarterback J. Steven Young, who represent a unique blend of investor-operators capable of bringing operational know-how and leadership to middle market portfolio companies. The firm was founded in 2007. Micro Focus is a global enterprise software company helping customers innovate faster with lower risk. Our software helps customers build, operate and secure IT systems that bring together existing business logic and applications with emerging technologies to meet increasingly complex business demands. The company was founded in 1976, and is headquartered in Newbury, Berkshire, United Kingdom. In 2104 Micro Focus acquired the Attachmate Group for $1.2 billion. After the merger, private equity firms Francisco Partners, Golden Gate Capital, Thoma Bravo LLC and Elliott Management Corp. ended up owning about 40% of Micro Focus. Following the merger in 2014 with The Attachmate Group of Companies, Micro Focus became one company operating two product portfolios, namely Micro Focus and SUSE. The Micro Focus portfolio is a grouping of the Attachmate, Novell, NetIQ, Borland and Micro Focus products, and the SUSE portfolio comprises value-added commercial open source solutions for enterprise customers.]]>