Compuware Acquires Data Processing Resources Corp, Oracle Snaps Up Geodan EDT

Strategic Insights -

Compuware is set to expand its IT services business beyond its Midwest base into the Western, Southwestern and Southeastern US with the acquisition of Data Processing Resources Corp (DPRC) in a deal valued at $448 million. The acquisition will also boost the number of technicians Compuware employs from 7,200 to 10,000. Meanwhile, Oracle is continuing to build out its front-office suite with the acquisition of Netherlands-based Geodan EDT, which makes scheduling software for field service engineers. Logica is also expanding its interests as an SAP implementer with the acquisition of Coventry, UK-based Team 121 (Enable) Ltd. In addition, America Online is investing $1.5 billion in Hughes Electronics to help develop satellite-based television and internet services.

Key Takeaways:

  • Compuware will acquire DPRC for $24 per share in cash, a transaction valued at around $448 million, with $350 million in cash and $95 million in debt assumed.
  • The acquisition will expand Compuware's presence into 27 more cities, with only nine DPRC field offices overlapping with existing Compuware offices.
  • Compuware will significantly boost the number of technicians it employs, from 7,200 to 10,000, through the acquisition.
  • Oracle is acquiring Geodan EDT, a 14-year-old company, to enhance its front-office suite with scheduling software for field service engineers.
  • Logica is acquiring Team 121 (Enable) Ltd. for 88.3m pounds ($139.5 million) to expand its interests as an SAP implementer.
  • America Online is investing $1.5 billion in Hughes Electronics to help develop satellite-based television and internet services.
  • Large customers of DPRC include Microsoft, AT&T, and NationsBank.
  • CEO Iain Barker of Team 121 stands to pick up around 50m pounds ($79m) in total from the acquisition.

Statistics:

  • The acquisition of DPRC is valued at $448 million.
  • Compuware will pay $350 million in cash for DPRC.
  • Compuware will assume $95 million in debt from DPRC.
  • The number of technicians Compuware employs will expand from 7,200 to 10,000.
  • The acquisition will give Compuware a presence in 27 more cities.
  • Nine DPRC field offices overlap with existing Compuware offices.
  • Logica will pay 88.3m pounds ($139.5 million) for Team 121.
  • Of this amount, 13.8 million pounds ($21.8 million) worth of shares will go to key senior managers of Team 121.
  • America Online is investing $1.5 billion in Hughes Electronics.
  • Geodan EDT is a 14-year-old company based in Amsterdam.

Sources:

  • Compuware (acquisition announcement)
  • Oracle (acquisition announcement)
  • Logica (acquisition announcement)
  • America Online (investment announcement)
  • Business Wire (multiple articles)