Corporate Acquisitions

Novell's Pending Private Takeover: Buyouts Are Back

SeekingAlpha |

In Brief...

The pending take-private of Novell (NOVL) underscores just how much private equity (PE) activity has rebounded since the credit crisis nearly shut down tech buyouts.. The $2.2bn purchase of infrastructure software and SUSE Linux vendor Novell stands as the seventh PE tech deal so far this year valued at more than $1bn. With still more than a month left to go in 2010, PE firms have already tallied 264 deals valued at $30.2bn. Cash-rich Novell is garnering an enterprise value of $1.2bn, or just 1.5 times sales. Still, Novell's LBO price is about 50% higher than where the company was valued at the start of the year..

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