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Borland To Acquire Starbase
Configuration-management vendor's software will augment Borland's application-development tools
October 9, 2002
1 Min Read
Borland Software Corp. is acquiring Starbase Corp., a supplier of software configuration-management technology, for approximately $24 million in cash, Borland said Wednesday. Starbase's software will augment Borland's line of application-development tools, creating a product set that unifies the design, development, testing, and deployment phases of software-life cycle management.
The deal calls for Borland to pay $2.75 for each outstanding share of Starbase, about $24 million. Both companies' boards have approved the deal, which is still subject to regulatory approval. Borland also will incur $7 million to $12 million in additional acquisition and transition costs. If the buyout is completed by year's end, as Borland hopes, Starbase will contribute $30 million to $35 million to the company's 2003 revenue.
Borland also is providing Starbase with $2 million in bridge financing to fund its operations until the deal closes. While most of Starbase's 235 employees will be retained, especially in sales and development, some general and administrative jobs will be cut, Borland president and CEO Dale Fuller says.
"The acquisition of Starbase continues Borland's ongoing effort to expand its application-development footprint," Fuller says. He describes application development today as a "fractured process." Starbase's products provide a range of capabilities such as requirements definition, defect tracking, and version control. The two companies' products are integrated to a limited degree now, and Borland expects to release fully integrated products in the first quarter of next year if the deal is completed this year.
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