I.B.M. to buy ailing Edmark for $110 million

Article Abstract:

IBM plans to acquire Edmark for $15.50 per share, in a deal valued at $110 million, as it plans an aggressive effort in the educational software market. Edmark has cash holdings of $31.5 million, which lowers IBM's cost to about $80 million. Edmark's sales totaled $32 million for the fiscal year ended Jun 1996, so IBM is paying only three times annual sales, considerably less than others paid to acquire Edmark competitors in late 1995 and early 1996. Analysts say that IBM's offer is reasonable because of changes in the industry. Edmark did well in 1995, but suffered in 1996 because it lacked the size required to get large retailers to stock its titles. The company also faced increased competition from Walt Disney, which has become more active in the children's software market. Edmark will become an IBM subsidiary. IBM's James A. Firestone, the general manager of the consumer division, is positive about the acquisition, claiming that the education market is growing 20% to 30% annually.

Educational Software Pkgs (Micro), Educational software, Marketing, Edmark Corp., Company Acquisition/Merger, Educational/Training Software, EDMK

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Microsoft's efforts to take over Intuit tests the nerves of some of Wall Street sharpest investors

Article Abstract:

The impending acquisition of personal finance software publisher Intuit Inc by Microsoft is creating uncertainty in the stock market. The investment community is concerned about recent legal setbacks on the part of Microsoft, particularly the recent reversal of a previously struck antitrust settlement with the Dept of Justice. There is a perception that, although the acquisition of the personal finance software maker by the main player in the systems software market appears to be perfectly legal, the DOJ may hold it up as a show of resolve. Another possibility is that Microsoft may simply walk away from the deal if it becomes the subject of a drawn-out litigation or investigatory process. These doubts have widened the spread, or the difference between the value of Microsoft's proposed stock swap offer and the value of Intuit's stock, to a level of $22. This potential for loss if the deal does not go through has prompted some Intuit investors to reduce their positions.

Planning, Microsoft Corp., MSFT, Company business planning, Intuit Inc., Stock markets, Stock Market

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I.B.M. wins Lotus as offer is raised above $3.5 billion; taking aim at Microsoft; giant gains creative partner in $64-a-share accord - no antitrust issue seen

Article Abstract:

IBM will acquire Lotus in a hostile takeover that was raised from an initial bid of $3.3 billion to over $3.5 billion. The deal will give IBM a company with a product, Lotus Notes workgroup software, that will create a new competitor to Microsoft as it prepares to release its Windows 95 operating system. The price that IBM is paying for Lotus will make the deal the largest that has ever been paid for a computer software company. Analysts had expected Lotus to be able to leverage a higher purchase price for the company but a lack of another bidder reduced its leverage in trying to increase the price. Lotus officials were able to improve the terms of the deal in order to retain some of its independence after it belongs to IBM.

Lotus Development Corp., LOTS

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