Bidding to boost its annual revenues past the $3,000m mark this fiscal, Computer Associates International Inc swept in with an agreed $47.95 a share cash offer for one of the few remaining diversified software companies of any size, Legent Corp. The deal values Legent at $1,750m. Unless the Feds find an objection on monopoly grounds, it looks like a done deal, because Islandia, New York-based Computer Associates says the boards of both companies have approved the deal, and that Legent’s largest shareholder, General Atlantic Partners, which has 10%, will vote its shares in favour. One man who is not likely to be terribly happy is Jerre Stead, who jumped ship at AT&T Global Information Solutions at the turn of the year to run Legent, and had big plans for the company (CI No 2,615). Legent’s shares jumped $13.625 to $44.875 and the market saw it as a super move for Computer Associates too, and its shares added $2.125 to $67.75. Part of the vast cash sum will come from a $2,000m line of credit underwritten by Credit Suisse. Jerre St ead has been highlighting the Herndon, Virginia company’s skills in client-server integration, and Computer Associates looks for the acquisition to accelerate the momentum its built up in client-server computing. Computer Associates intends to integrate its software products with those of Legent. It had turnover of $2,600m in the year to March; Legent sales are running at $500m a year.
