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NetManage buys FTP software

By Felicity Ussher

Published: Friday 26 June 1998

NetManage has bought FTP Software. NetManage currently develops legacy host-to-PC software, but the purchase of FTP will extend its reach to PC LAN-based client-server communications.

The acquisition, which awaits approval from shareholders and regulators, values FTP Software at $77.4m (£48.4m). Of this, $65m (£40.6m) will be accessible for other projects. The deal is due to be completed in the third quarter. Ron Kuhl, NetManage's director of marketing and communications, said: "Consolidating these markets [PC and host connectivity software] will lead to new enterprise customers beyond the existing customer bases of both companies. If the deal goes ahead, we will rival Wall Data and WRQ, although IBM and Attachmate are still way ahead."

The deal also opens up new ways of approaching customers. "Whereas two thirds of NetManage's sales are direct to the customer, FTP Software mainly uses distributors and resellers," said Kuhl. NetManage president, Zvi Alon, said the company will begin enhancing its international distribution, but UK MD Gordon Ash was not prepared to comment.