Aaron Katsman
www.IsraelNewsletter.com

Once again the Israeli firm NetManage (NETM) is set to be acquired. This time Micro Focus has offered that they will acquire each outstanding share of common stock of NetManage for $7.20 per share, representing a premium of approximately 73% over the closing share price of NetManage’s common stock on April 30, 2008 of $4.15.

This is great news for investors as they are getting some serious premium. It’s also not the first time we have been down this road. About 6 months ago Rocket Software  also tried acquiring NetManage, but after a few months, they had to give up as they were unable to secure financing.

It appears  that this time the deal should go through. They firms have set a date of June to complete the deal. This indicates to me that financing is not a problem.

It will be interesting to see how the stock trades in respect to the take-out price, for potential merger-arbitrage possibilities. Stay tuned.

Disclosure: Author’s fund has no position in NETM, fund has no position in any other stock mentioned as of 5/1/08.

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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.

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