Advised Micro Focus on its acquisition of Relativity Technologies, a provider of Enterprise Application Modernisation solutions

We are pleased to announce that Arma Partners acted as exclusive financial advisor to Micro Focus International plc (LSE: MCRO.L) on its acquisition of Relativity Technologies, Inc., a US-based leader in Enterprise Application Modernisation solutions with over 400 customers worldwide. Relativity is a privately held company backed by Intel Capital, Wachovia Strategic Ventures, Tall Oaks Capital Partners, Noro Moseley Partners, Wakefield Group, Sojitz Corporation and CEC.

Micro Focus, a member of the FTSE 250, is a provider of innovative software that allows companies to dramatically improve the business value of their enterprise applications. The acquisition of Relativity will further strengthen Micro Focus’s position as a leading player in the fast growing, highly fragmented Application Modernisation market as well as further expand Micro Focus’s geographic reach, partner relationships and international customer base. The acquisition will be earnings enhancing in Micro Focus’s fiscal year ending 30 April 2009 (before amortisation of intangible assets and one-off integration and restructuring costs).

The Directors of Relativity have unanimously approved the terms of the offer, which is subject to customary closing conditions and approval by Relativity’s shareholders. The transaction is expected to close before the end of 2008.

This is the second transaction on which Arma Partners has advised Micro Focus this year, having also acted as exclusive financial advisor on their $73m acquisition of NetManage, Inc. (NASDAQ: NETM) in May.