Compuware Corp has agreed to acquire IT professional services company Data Processing Resources Corp of Irvine, California, for $24 per share in cash, a transaction valued at around $448m. Compuware will pay $350m in cash, and assume $95m 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 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 $355m in its fiscal year ending April 30, and has 3,400 professionals on its books. Large customers include Microsoft Corp, AT&T Co and NationsBank Corp. 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.
