HP has completed its takeover of Mercury, which it says is the largest software acquisition in its history.
The acquisition is expected to increase the size of HP's software business to more than $2 billion in annual revenue, the company previously said in a media statement.
In July, the technology solutions provider said it had acquired the software company for $4.5 billion, or R33.3 billion, at an exchange rate of R7.39.
At the time of the initial announcement, Claude Ibalanky, head of corporate communications for HP SA, said input on the potential impact of the deal in SA had not filtered to country-level yet. However, he noted, previous experience with HP acquisitions shows the integration of HP SA and Mercury will likely result in increased opportunities, instead of job losses.
Lenore Kerrigan, Mercury's alliance director in the sub-Saharan region, added that global changes would only begin in the fourth quarter of 2006. While Mercury does not foresee a major local change in the immediate future, it is up to HP to make strategic decisions on the way forward, she said.
Growth developer
"Software is an important driver of growth for HP, and we are delighted that Mercury's products, people and customers are joining the new HP Software organisation," says HP CEO and chairman Mark Hurd in a statement released today.
The deal, said the company, integrates Mercury's application management and delivery and IT governance capabilities with HP's portfolio of management solutions to create a new HP Software organisation that it hopes will lead the industry in business technology optimisation.
On closing of the deal, outstanding Mercury shares were converted into the right to receive $52 per share in cash. As a result of the merger, Mercury has become a wholly-owned subsidiary of HP.
Related story:
HP buys Mercury for $4.5bn
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