Sopra subsidiary combines with Tumbleweed Communications

By Lisa Kerner

Charlotte, N.C., Sept. 4 - Sopra Group SA announced that its subsidiary Axway completed the $138 million acquisition of Tumbleweed Communications Corp. first announced in July.

Each outstanding share of Tumbleweed stock was converted into the right to receive $2.70 in cash.

Tumbleweed shareholders approved the merger in early August.

Sopra, a Paris-based internet technology consulting company, funded the deal using its existing lines of credit.

The company expects the combination of Axway and Tumbleweed to generate revenue of approximately €230 million with an operating margin of between 12% and 15%, a Sopra news release said.

According to Sopra, Tumbleweed's common stock was slated to cease trading on the Nasdaq at the close of business on Thursday and will be delisted.

Tumbleweed is a Redwood City, Calif., messaging security solutions company.

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