Software AG to buy Israeli legacy integration technology co Sabratec
The price is expected to be $12 million, 65% in cash.
The acquisition price is expected to be about $12 million, of which 65% will be cash. The remainder will be paid in the form of royalties spread over three years.
Sabratec's IntelinX activity will be spun off as a separate company. IntelinX is an advanced software solution for monitoring transaction in an enterprise's main systems. It provides an answer to regulatory requirements, chiefly in the finance, gvernment, security, and medical sectors.
According to Software AG, the ApplinX product is highly synergistic with its Enterprise Transaction Systems and XML Business Integration portfolios. The ApplinX technology focuses on helping the great majority of mainframe customers - with applications written in COBOL - to cost effectively extend those applications to other business systems.
Sabratec currently serves approximately 200 customers in the USA, Europe, South America and Australia. With around 2,000 Adabas/Natural customers, Software AG provides products that help companies preserve investments in their legacy applications. The combined entities will expand Software AG's modernization and integration portfolio to serve a broad global community.
"The planned acquisition of Sabratec and its innovative ApplinX integration technology will further position Software AG as a strategic partner to its existing and new customers," said Softtware AG CEO Karl-Heinz Streibich. "It will also allow us to expand our market-share while better positioning the company for organic growth."
Sabratec CEO Orna Minz-Dov said, "I am proud that Software AG has chosen the ApplinX technology after extensive market research. The management team is looking forward to increasing successes with Software AG and extremely pleased to be working with such a successful and stable company".
As part of the agreement, Software AG will acquire Sabratec's Israeli headquarters as well as Sabratec, Inc., located in New York. In addition, Sabratec said that its partners in 14 countries worldwide would be able to better serve their customers by offering a full line of proven XML-based integration solutions from Software AG. Software AG will become 100% owner of Sabratec, but Sabratec's R&D center in Israel will remain there, and will be run by Sabratec's Israeli management.
Sabratec is the first Israeli company to be bought by Software AG, and the first acquisition of any kind since Software AG announced a strategy of mergers and acquisitions as part of its expansion plans.
Sabratec was founded in 1997 as a spin off from SPL by Pini Cohen, who now serves as the company's CTO, and Boaz Krelbaum, who is VP Development. Minz-Dov, who joined the pair later, will be responsible for the business management of both Sabratec's product lines after the merger.
Software AG was founded in 1969. It is headquartered in Darmstadt, Germany and is listed on the Frankfurt Stock Exchange. In 2003, Software AG has €420 million revenue.
Published by Globes [online], Israel business news - www.globes.co.il - on January 9, 2005
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