NetIQ and Mission Critical to merge

Rival software vendors NetIQ and Mission Critical Software are to merge in a stock swap deal worth about $1.4bn (£90m).

Rival software vendors NetIQ and Mission Critical Software are to merge in a stock swap deal worth about $1.4bn (£90m).

The combined company, which will have a new name, will be worth an estimated $2.7bn. Officials termed the deal as a "merger of equals".

Both companies have established European channels to focus on software and tools to manage systems running on Microsoft operating systems. The merger, which is subject to regulatory approval, should be completed by June 2000.

Ching-Fa Hwang, chief executive of NetIQ, will also be chief executive at the new company. Michael Bennett, currently chief executive of Mission Critical, will be executive chairman.

Hwang said: "This a synergistic combination that will deliver strong results for customers. We have a clear vision for smoothly integrating our organisations and are committed to maximising the potential of what will become the clear leader in Windows 2000 systems management."