Will the Second Time Be the Charm for NetManage?

Once again the Israeli firm NetManage (NETM) is set to be acquired. This time, Micro Focus (MCFUF.PK) has offered to acquire each outstanding share of common stock of NetManage for $7.20 per share, representing a premium of approximately 73% over the closing share price of NetManage’s common stock on April 30, 2008 of $4.15.

This is great news for investors as they are getting some serious premium. It’s also not the first time we have been down this road. About six months ago Rocket Software also tried acquiring NetManage, but after a few months, it had to give up as the company was unable to secure financing.

It appears that this time the deal should go through, as the firms have set a June date for completion of the deal. This indicates to me that this time, financing is not a problem.

It will be interesting to see how the stock trades in respect to the take-out price, for potential merger-arbitrage possibilities. Stay tuned.

Disclosure: The author’s fund has no position in NETM, or in any other stock mentioned as of May 1, 2008.