Progress Software to buy Iona

Wed Jun 25, 2008 7:24am BST

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NEW YORK (Reuters) - Progress Software (PRGS.O) said on Wednesday that it will buy IONA Technologies IONA.I, a software integration technology company, for $106 million.

Progress said it is offering $4.05 per share in cash for Dublin-based IONA, which represents a total equity value of $162 million, or $106 million net of cash and marketable securities.

Bedford, Massachusetts-based Progress said the offer price per share is about 16 percent above the average price for IONA shares over the six months prior to the offer period.

IONA's board unanimously approved the transaction and its directors plan to vote in favour of it, Progress said.

The transaction is expected to complete in September, pending regulatory approval.

(Reporting by Robert MacMillan; Editing by Erica Billingham)

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