Rational Software Corp’s acquisition of Pure Atria Corp is likely to lead to lay offs, say sources. Overlaps in engineering, marketing and finance mean that reductions in the combined workforce is inevitable, according to insiders, though no Rational official was available for comment at their Santa Clara, California HQ. The acquisition is due to be completed by August with delivery of integrated products planned by the year-end. It can only be delayed by the Department of Justice or shareholders – but there is a powerful incentive for the deal to be approved. The acquisition agreement states that any side pulling out must pay $18m to the other the next day. Once the deal gets the go ahead, Pure Atria will become Rational Software immediately.
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