Compuware agreed to acquire IT services company Data Processing Resources Corp of Irvine, California, for $24 per share in cash, a transaction valued at around $448 million. Compuware will pay $350 million in cash, and assume $95 million in debt. The acquisition will expand the number of technicians Compuware employs from 7,200 to 10,000, and help it expand its IT services business beyond its Midwest base into the Western, Southwestern and Southeastern US, the company said. Formed in 1985 as a computer staffing outfit, DPRC went public in March 1996, and grew through an aggressive acquisition program. It reported revenue of $355 million in its fiscal year ending April 30, and has 3,400 professionals on its books. Large customers include Microsoft, AT&T and NationsBank. Compuware said the deal would expand its reach to 27 more cities. Only nine DPRC field offices overlap with existing Compuware offices, the company claimed.
Oracle continued building out its front-office suite with the acquisition of Netherlands-based Geodan EDT, which makes scheduling software which can be used by field service engineers. Oracle declined to say how much it is spending on Geodan, but will rename its planning, scheduling and routing software products Oracle Scheduler. Oracle says it rounds out its Oracle Service suite so that it can now manage the entire field service and customer service cycle. Geodan, a 14-year-old company, is based in Amsterdam.
Logica’s spending spree continued, as the London-based systems integrator and IT consultancy is expanding its interests as an SAP implementer with the acquisition of Coventry, UK-based Team 121 (Enable) Ltd. Logica will pay 88.3m pounds ($139.5 million) for Team 121, made up mainly of cash and new Logica ordinary shares. Of this, 13.8 million pounds ($21.8 million) worth of shares will go to key senior managers of Team 121. CEO Iain Barker, a former UK manager of SAP who set up Team121, stands to pick up around 50m pounds ($79m) in total.
America Online continued to build out its broadband internet strategy with the announcement that it has invested $1.5 billion in Hughes Electronics to help it develop satellite-based television and internet services. Under the terms of the deal, AOL will receive a General Motors (which owns Hughes) equity stake, which will pay 6.25% annually and which will be convertible into GM Class H common stock in three years. Specifically, the money will go some way towards helping Hughes Network Services (HNS), a division of Hughes Electronics, co- develop, with AOL, a set-top box to deliver the online service provider’s AOL TV offering.
