Silver Lake Partners, a private equity firm, will acquire Serena Software in a US$1.2 billion deal, the two announced Friday.
Serena's board of directors along with a special board of independent directors have approved the merger and recommended stockholders approve the deal, according to a news release. The transaction is expected to be completed by the first quarter of calendar year 2006.
Mark Woodward, Serena's president and chief executive officer, said that Silver Lake Partners have an excellent track record and are focused on long-term performance, bringing resources and experiences that will contribute to Serena's growth.
"We believe that under private ownership we'll have far greater flexibility to execute our strategy," Woodward said in a conference call following the announcement.
Under the terms of the deal, Serena stockholders will receive US$24 in cash for each share, they said. The figure represents a 17 percent premium over the average share price over the last 30 days, said Robert I. Pender, chief financial officer and senior vice president of finance and administration.
"We think we got a very fair price," Pender said.
Both Woodward and Pender will remain in the same positions after the deal is complete.
Serena said it expects between US$21.5 million to US$22.5 million in license revenues and total revenues to be between US$64 million to US$65 million for its third quarter ending Oct. 31. The company will report final earnings for the third quarter of fiscal 2006 on Nov. 17, it said.
Serena, which has its headquarters in California, provides enterprise change management (ECM) software. Silver Lake Partners focuses on technology investments. Silver Lake Partners has headquarters in California and New York.