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SAP: Article

Software AG To Buy IDS Scheer

It is offering roughly $21 (€15) in cash a share
By Maureen O'Gara
Article Rating:
July 14, 2009 12:45 PM EDT
Reads:
 4,854

With 47.68% of the company already pledged to it by its two founders, Software AG says it intends to tender for the rest of German-based IDS Scheer AG and create a global vendor of infrastructure software and Business Process Management (BPM) that has more than 6,000 employees and upwards of $1.4 billion in sales.

It is offering roughly $21 (€15) in cash a share or close to $675 million, a 39% premium that seems to be regarded as a depressed price. Apparently the 25-year-old IDS has been at a loss to boost profitability.

Software AG says it’s already signed a deal with IDS co-founders August-Wilhelm Scheer and Alexander Pocsay for their 15.3 million shares.

IDS has skills in analyzing and mapping business processes, a strong partner network, a large service presence and approximately 7,500 customers. It offers expertise in vertical industries, direct access to vertical markets and a strong position in the SAP consulting business.

Software AG, Germany’s second-largest software maker, claims their combined product portfolios will be “unique” and give it a stronger, sustainable competitive position in a consolidating software market.

It describes the strategy as “clearly growth-oriented,” meant to increase sales of both product lines and exploit the specialist expertise of IDS’ consultancy business. It says, “This consulting expertise is of use for the customer-specific implementation of Service-Oriented Architectures (SOA) and BPM/BPA solutions, particularly in SAP environments.”

Published July 14, 2009 – Reads 4,854
Copyright © 2009 SYS-CON Media, Inc. — All Rights Reserved.
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Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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