Phoenix Technologies recently announced that it has signed a definitive agreement to acquire TouchStone Software Corporation, a company specialized in computer diagnostics and development of PC update technology. Under the terms of the agreement, TouchStone shareholders will receive $1.48 in cash for each share of TouchStone common stock, representing a 29% premium over the closing price of TouchStone’s stock on April 9, 2008.
According to the press release, Phoenix Technologies’ acquisition of TouchStone will enable the company to develop a strong online presence and infrastructure for web-based service delivery. Phoenix will offer services based on TouchStone technology to PC OEMs/ODMs, SMBs and consumers, as well as incorporate the technology into its own products.
“Following close on the heels of our BeInSync announcement, this acquisition is yet another giant leap forward in our effort to simplify all aspects of the PC user experience,” said Woody Hobbs, President and CEO of Phoenix Technologies. “Our PC 3.0 vision is all about simplifying PC users’ lives. With the acquisition of TouchStone, we are taking PC management technology to the ‘one-click’ level as well as strengthening our ability to support online delivery models. We are also broadening our opportunities for new market share gains and new sources of revenue via the web.”
The acquisition, which is expected to close in Q2 of 2008, is subject to customary closing conditions, including approval by the stockholders of TouchStone. special meeting of TouchStone’s stockholders will be scheduled as soon as practicable following the preparation and filing of proxy materials with the Securities and Exchange Commission.
You might remember Phoenix Technologies was the company that reportedly put pressure on Microsoft by filing a complaint with regulators sometime after early November 2007, arguing that Microsoft should open the less-expensive versions of Vista to virtualization (which it did).