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Veteran Seattle Software Company Attachmate Joined Micro Focus in $1.2B Deal

Micro Focus’s 2014 merger was with The Attachmate Group, not just Seattle-based Attachmate. The share deal brought NetIQ, Novell and SUSE into the combination.
From TheFinanceBase Team3 min to read
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On September 15, 2014, British software company Micro Focus agreed to combine with The Attachmate Group, the parent company of Seattle-based Attachmate. Contemporary coverage put the share-based transaction at about $1.2 billion. It was not a simple all-cash purchase of Attachmate alone: the deal brought a wider portfolio—including NetIQ, Novell and SUSE—under Micro Focus.

What Attachmate did

Attachmate was a roughly 30-year-old Seattle enterprise-software company when the merger was announced. Its products helped organizations connect to and maintain older, mission-critical computing environments, including mainframes and other host systems. The portfolio included terminal emulation, legacy-application integration and modernization, enterprise connectivity, and managed file transfer. These were infrastructure products for businesses operating systems that could not simply be replaced.

A 2010 SEC filing describes Attachmate’s business and corporate structure: SEC filing on Attachmate. GeekWire reported the company’s Seattle identity and product focus at the time of the deal: GeekWire’s September 2014 report.

The transaction covered more than the Seattle company

Attachmate Corporation was the operating company associated with Seattle; The Attachmate Group was its broader parent. The group also owned NetIQ, Novell and SUSE. Micro Focus’s later annual-report accounting identifies the acquired group as Houston-based, underscoring that the Seattle company and its parent were distinct entities.

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So “Micro Focus acquired Attachmate” is understandable local shorthand, but the formal transaction was a merger between Micro Focus and The Attachmate Group. Novell and SUSE were not separate targets in this transaction; they came under Micro Focus as members of the group’s portfolio. The group’s announcement described the combination and its business rationale: merger announcement.

Why the deal was reported as $1.2 billion

At announcement, the transaction was described in contemporary coverage as an approximately $1.2 billion share deal—not a straightforward cash payment for the Seattle operating company. The investment firms that owned The Attachmate Group were expected to retain approximately 40% of the combined company. The announced combination was projected to generate about $1.4 billion in annual revenue; that was a forecast, not a confirmed post-merger result.

Later, Micro Focus’s 2017 annual report recorded consideration of approximately $1.3862 billion for the transaction. That accounting figure and the contemporary $1.2 billion headline value are figures from different reporting contexts; the annual-report amount should not be mistaken for a later cash purchase price. The report sets out the transaction accounting: Micro Focus Annual Report and Accounts 2017.

Why Micro Focus wanted the portfolio

Micro Focus and Attachmate operated in mature enterprise infrastructure software. The merger added Attachmate’s host access, legacy integration and managed file-transfer products to Micro Focus’s existing business, alongside the broader group’s Novell, NetIQ and SUSE portfolios. Micro Focus presented the combination as a way to broaden products and global reach and strengthen the combined company financially. Those were the company’s stated strategic aims, not proof that customers or employees later experienced particular benefits.

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What was said about Seattle employees

When the deal was announced, Attachmate spokeswoman Tiffany Curci told GeekWire that no changes were planned for Attachmate, that Seattle employees were not expected to be affected, and that the Seattle office was not expected to change. This records the company’s stated plans at that time; it does not establish what happened to staffing, the office, or the brand in subsequent years.

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Announcement, expected date and completion

  1. September 15, 2014: Micro Focus and The Attachmate Group announced their merger agreement.
  2. November 3, 2014: Contemporary coverage cited this as an expected closing date, not the date the deal ultimately completed.
  3. November 20, 2014: The merger was completed. SUSE’s announcement confirmed that it was then part of Micro Focus and described it as a separate portfolio during integration: SUSE’s completion announcement. Micro Focus’s press-room archive contains its transaction announcements: Micro Focus press-room archive.

The completion brought a collection of established enterprise-software businesses together under one parent. The available announcement-era statements describe the transaction and initial intentions, but do not establish product-by-product support, licensing changes or long-term staffing outcomes.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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