28.cendant/fisher/4″/dt1st/mark2nd

No. 28

Vivendi Buys Cendant Software

After watching its former owner become hobbled by alleged accounting fraud, Torrance-based Cendant Software now boasts a healthier parent. French conglomerate Vivendi SA announced in December that it would acquire Cendant in a deal totaling nearly $1 billion.

Operating through its media subsidiary, Vivendi will pay Cendant Corp. an initial $800 million for the software division, plus up to $185 million depending on the software company’s financial performance over the next year. The new name of Cendant Software will be announced in January when the deal closes, but the division’s management team will remain intact.

For Cendant, one of L.A.’s largest software firms, the acquisition is expected to strengthen its leadership position in the recreational software industry. The company should also benefit from greater available financial resources and be better positioned in the global market.

As for Vivendi, the acquisition marks its blockbuster debut in the multimedia industry. The French company has made it clear that it intends to become a multimedia powerhouse in the coming years.

Sara Fisher