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  1. Technology
February 7, 1999

M&A IMPACT: KEY DEALS

By CBR Staff Writer

– Computer Sciences Corp has acquired a 51% stake in CSA Holdings Ltd, one of the largest IT services companies in Asia. CSC already owned about 32% of CSA’s 128 million outstanding shares. Singapore-based CSA boasts roughly $270m in annual revenue and has 2,000 employees and is part of an aggressive expansion strategy the company is planning through Asia.

– America Online Inc acquired MovieFone Inc, the purveyor of telephone and web-based movie information and ticketing services for about $388m in AOL stock. In addition to its web-based transaction service, MovieFone provides familiar phone numbers in numerous local US markets where movie-goers can dial 777-FILM to order tickets.

– UK-based accounting software company, The Sage Group Plc strengthened its position in the US market with the $145m acquisition of Peachtree Software. Sage’s main break into the US came in January 1998 with the $263m purchase of Irvine California-based State Of The Art Inc. The all-cash deal with Peachtree’s owner, New Jersey-based computer services company, Automatic Data Processing Inc, is designed to give Sage a base in the small business market where Peachtree’s package has one million users.

– Star Telecommunications Inc, the Santa Barbara, California-based international long distance carrier, acquired PT-1 Communications Inc, a fellow carrier and the largest provider of prepaid calling cards in the US. The merger creates the seventh-largest long- distance carrier in the US in terms of revenue, doubling the size of Star’s business to approximately $1bn a year. The deal was completed through the issuance of 15.3 million shares of Star common stock – representing approximately 27% of the combined outstanding stock – and $19.5m in cash to the PT-1 stockholders, valuing the acquisition is $233.7m.

– Mannesmann AG and Olivetti SpA have increased their stake in the Italian telecoms market as a result of their successful bid for US telco Cellular Communications International, which owned a 10.3% share of Italian telco Omnitel. The acquisition could give the Olivetti/Mannesmann partnership a 50.3% joint stake in Omnitel, but Bell Atlantic Corp has been given options to buy a third of the Cellular Communications stake. If Bell Atlantic takes the option, its Omnitel stake would rise to 23.1%, leaving Olivetti/Mannesmann with 46.8%. The German/Italian partnership’s successful offer of $80 per share, made through their wholly- owned subsidiary Kensington Acquisition came after a previous offer of $65.75 per share was rejected by shareholders. The successful offer values the company at $20bn. á

This article is part of ComputerWire’s M&A Impact information service. Some articles from the service are being provided to ComputerGram subscribers for a trial period only.

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