Shares of U.K. business software company Micro Focus International PLC (MCRO.LN) rose 18%Wednesday after it said it expects full-year adjusted earnings before interest, taxes, depreciation and amortization to rise 30%, and announced two acquisitions.

It said it would buy Texas, U.S.-based software company Borland Software Corp. (BORL) for $75 million, and Detroit, Michigan-headquartered Compuware Corp.'s (CPWR) testing and automated software quality business for $80 million.

The acquisitions were seen positively by the market and at 1022 GMT shares were up 18% or 62 pence at 405 pence, outperforming a 1.3% rise in the FTSE 250.

Numis upgraded the stock to a buy from hold following the news, and said that the two acquisitions may lead to a pro-forma earnings per share upgrade of 40% to 50%.

Micro Focus said it will give more details on the acquisitions and forecasts for synergies in June.

The company, which provides software and consultancy services that help clients to update their legacy systems to more modern platforms, said that it had delivered a "solid" fourth quarter and that full-year adjusted Ebitda is expected to be in the range of $115 million to $117 million.

Earnings are adjusted for the post-tax effect of exceptional items, share based compensation and some amortization effects.

Micro Focus has seen an acceleration in customers wanting to upgrade legacy systems, as companies look to improve software systems in a bid to cut costs, Chief Executive Stephen Kelly said in a telephone interview.

It said that revenue for the full-year is expected to rise by about 20%, from 2008's $228.2 million.

"Excluding the beneficial impact of acquisitions, the group expects to achieve double digit organic revenue growth in the core business at constant currency," the company said.

Numis said that the full-year forecasts given by the company were in line or slightly ahead of consensus.

Company Web site: www.microfocus.com

-By Erica Herrero-Martinez, Dow Jones Newswires; 44 20 7842 9353; erica.herrero-martinez@dowjones.com