Technology performance company Compuware (News - Alert), already wrapping up a strong and successful year, continues to hit home runs as it announced it reached an agreement with Elliott Management that includes the nomination of two new members to Compuware's Board of Directors and provides for the creation of an advisory committee to assist in the company's ongoing review.
"We appreciate the opportunity to have a constructive engagement with Elliott," said Bob Paul, president and CEO of Compuware. "Over the last year, we have taken monumental steps, including divesting several non-core businesses, taking Covisint public, implementing a significant expense management program, and returning capital directly back to shareholders. Today's announcement further validates the effectiveness of our steps to date and the direction in which we are headed.”
The transformative initiatives CEO Paul alluded to include:
- Agreeing to sell its Changepoint, Professional Services and Uniface businesses to Marlin Equity Partners for $160 million;
- Launching the successful IPO of its Covisint business;
- Implementing an aggressive two-year program to reduce corporate expenses by $80 to $100 million. (It was announced that this action is currently ahead of schedule, with $40 to $45 million of these costs on track to be removed by the end of the fiscal year, March 31, 2014);
- Forming a new committee on the board to work with management on additional value-generating steps.
"We took an active interest in Compuware because we recognized the underlying value of the company and its potential to drive significant value to shareholders," said Jesse Cohn, portfolio manager at Elliott Management. "Driven by a dedicated and committed leadership team, the last twelve months have seen enormous progress made toward efficient operations, a streamlined portfolio and a shareholder-friendly capital return program.”
More than 7,100 companies, including many of the world's largest organizations, depend on Compuware and its new-generation approach to performance management to help its customers optimize the performance of their most important and innovative technologies.
Edited by Blaise McNamee