The US Department of Justice (DoJ) said it would permit Computer Associates to buy Platinum Technology for $3.5 billion, providing the company sells off certain mainframe products.
CA said the six Platinum mainframe products to be sold represent less than five per cent of Platinum's revenues. The products, which cover tape management, job scheduling, change management software for the OS 390 operating system and job scheduling for the VSE operating system, will be sold to a buyer approved by the DoJ.
CA also announced that its subsidiary, Hardmetal, is extending its cash offer to purchase all outstanding shares of common stock of Platinum for $29.95 until midnight, New York time, tomorrow (27 May). The offer was previously scheduled to expire yesterday. The company originally announced its intention to buy Platinum at the end of March.
Sanjay Kumar, CA president and chief operating officer commented: "We are pleased that the Department of Justice has cleared our acquisition, and we appreciate the effort made by the Department to review this matter expeditiously."
He added: "After reviewing hundreds of products, the agreement with the Justice Department will result in the sale of a few Platinum mainframe products under the supervision of a court appointed trustee. We can now move forward with our plans for Platinum technology and to achieve the synergies that hold much promise for our clients."
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