Canada's Absolute Software Corp said it acquired LANrev security software product suite from Germany's Pole Position Software GmbH for about $14.6 million in cash and stock, to strengthen its position in the asset management and data protection markets.
Absolute Software, which provides security software, said it would pay $9.6 million in cash, while $2.5 million and 500,000 common shares would be paid over a three-year period.
Absolute said it expects to save about $4 million in tax related to the transaction.
The deal would be neutral in fiscal 2010 and add to cash from operating activities in fiscal 2011, Absolute said.
Pole Position Software's assets consist of intellectual property related to LANrev, a comprehensive computer systems management software application for PCs, Mac and iPhone, Absolute said in a statement.
The new offering will be branded Absolute Asset Management and will be launched in early 2010, Absolute said.
Absolute shares were down 1 Canadian cent at C$5.14 in morning trade Thursday on the Toronto Stock Exchange.
(Reporting by Amit Kumar in Bangalore; Editing by Gopakumar Warrier)