Software AG buys Jacada’s application modernisation business
ConvergenceAsia staff
03/01/2008

Software AG recently announced the acquisition of the application modernisation business of Jacada for US$26 million in a cash transaction. The asset deal expands Software AG’s application modernisation portfolio with additional products for modernising the user interface of mainframe and mid-range based applications.

In addition, eight of Jacada’s R&D and support staff will join Software AG insuring continuous product development and customer support. Software AG will gain over 200 enterprise customers, mostly in the United States, as a result of the acquisition.

Application modernisation extends the value of custom applications by making their existing functionality and data available via the web, within a service-oriented architecture (SOA), or as part of an end-to-end business process.

Currently Jacada’s application modernisation products generate around $12 million revenue annually with profit margins above Software AG’s group average. The asset deal, effective as of 1 January 2008, will be earnings accretive in 2008. This is Software AG’s third acquisition of 2007 following the acquisition of webMethods in June for $546 million and 80 per cent of SPL Israel in March for $62 million.

Karl-Heinz Streibich, CEO, Software AG, said for current Jacada customers, the acquisition is excellent news. Existing products will benefit from an expanded research and development organisation with far greater financial resources. “These customers will also enjoy access to a host of complementary products. This is also good news for Software AG as the acquired technology will further strengthen our position within an important market,” he added.

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