Network Associates yeserday announced plans to acquire help desk pioneer Magic Solutions in a cash deal worth $US110 million.
Network Associates, formed last year in a merger between McAfee Associates and Network General, aims to strengthen its position in the market for help desk applications, the company said in a statement.
The purchase will boost Network Associates consulting and service staff to over 200 worldwide, and gives Network Associates access to Magic Solutions installed customer base of over 5000 organisations.
Network Associates said it plans to continue to sell both companies' help desk products but eventually combine its help desk tool, McAfee Total ServiceDesk, with Magic Solutions' SupportMagic/SQL. The integrated product will feature a unified data model, architecture and user interface and is expected to be released before the end of 1998.
The transaction, pending approval of Magic Solutions' shareholders and other traditional closing conditions, is expected to be finalised early during in the second quarter.
In connection with the closing of the proposed transaction, Network Associates currently expects to incur a charge to earnings related to the purchase of in-process research and development of approximately $US90 million, the company said.