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Software AG Announces IDS Scheer AG Takeover Offer
Published Aug 4, 2009
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Software AG, the world’s largest independent provider of business infrastructure software, has recently (July 14th, 2009) closed a contract for the transfer of ca. 48% of the outstanding shares of IDS Scheer, a market leader in Business Process Management (BPM) software, solutions and services for corporations and public organizations worldwide.
The sale of these shares will be part of a public tender offer by SAG Beteiligungs GmbH, a wholly owned subsidiary of Software AG, starting in the current quarter.
Software AG will offer €15 in cash per outstanding share of IDS Scheer capital. This represents a purchase price for the entire share capital of around €487 million.
After obtaining regulatory approval, the formal offer period will start in August and finish before the end of September.
As ca. 48% of the shares have been contractually secured it is not necessary to set a minimum quota.
The transaction will create a global producer of infrastructure software and Business Process Management software, with more than 6,000 employees and more than €1 billion in revenue.
Software AG’s strengths, such as technology leadership in middleware software, financial strength and a global presence will complement IDS Scheer’s strengths of the modeling, implementation and controlling of business processes, a strong partner network and a large service presence in their approximate 7,500 customer base.
IDS Scheer also offers extensive industry expertise and direct access to vertical markets and a strong presence in the SAP consulting business.
Marco Gerazounis, Senior Vice President, Software AG, Middle East, said: “The proposed merger will provide Software AG a sustainable and strengthened competitive position in rapidly consolidating global software market. It also gives us the advantage of strengthening our presence in key potential growth markets, such as the Middle East. Moreover, the powerful combination of the two successful business models will allow Software AG to offer added value to our clients. We are now preparing to accommodate an increase in customer base to maintain and strengthen our leadership in the BPM sector”.
The combination of both leading technologically and complementary product portfolios for the digitization and implementation of business processes of both companies will be unique and give the combined company a sustainable and strengthened competitive position in a rapidly consolidating software market.
In particular, by reaching a critical size in more key European markets, the company market access will be significantly improved.
In addition, the consulting expertise of IDS Scheer will allow Software AG to increase market penetration of its own products in industry specific and large projects.
Software AG will benefit from increased visibility and influence in the growing market for Business Process Management (BPM) technology.
The merger will also create a new powerful service provider for the integration of SAP solutions in heterogeneous application landscapes.
This will provide efficient, web based IT systems providing customers a real competitive advantage.
The integration and re use of existing software on the basis of service oriented Architectures (SOA) allows customers to digitalize their business processes and provides a quantum leap in productivity.
The joint company strategy will be clearly focused on growth. The growth drivers will be increased revenue of the combined product offering, an enhanced market access and the specialist expertise of IDS Scheer's consultancy business.
This consulting expertise will benefit customers specific implementation of service oriented Architectures (SOA) and BPM solutions, particularly in an SAP environment.
The combination of the two successful business models is expected to be accretive to Software AG’s operating earnings per share already in the first full fiscal year of consolidation (2010).
"Software AG and IDS Scheer complement each other perfectly. With the merger of two technology leaders we will create a globally significant company. Our expertise in business process management will be unique and will increase our competitiveness in this growth market", said Karl-Heinz Streibich, CEO of Software AG.
"Our robust business model and stable business performance enables Software AG to make this significant investment. We want to drive the strategic development of the company even in economically difficult times" concluded Streibich.
For further information, please contact
Orient Planet PR & Marketing Communications
Tel: +971 43988901
Fax: +971 43988941
P.O.Box 23345, Dubai, UAE
Email: info@orientplanet.com
Website: www.orientplanet.com
Posted by
VMD - [Virtual Marketing Department]
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