More Mergers And Acquisitions
There’s
no rest for the weary in the M&A sector.
I assume that M&A analysts sleep under their desks and
take turns sending out for Chinese food – too risky to miss a
minute in a market that’s this hot.
We’ve
selected a few bits of M&A activity in our sector to note.
Note that this is not just companies being acquired (IBM/
Systemcorp); it’s also M&A attempts in progress (PeopleSoft/
Oracle), Preparing for future M&As (CA), and other twists on the
theme.
IBM To Acquire Systemcorp
IBM
is acquiring the privately held Montreal software company
Systemcorp, a leading provider of
Project Portfolio Management (PPM) software that provides
organizations with a comprehensive view of IT projects across the
enterprise. Executives, project managers and other business and
technical stakeholders can use Systemcorp's Web-based PMOffice™ to
track deliverables, including budgets, tasks and risks, from the
inception of a project until its completion.
Systemcorp's software
provides the visibility needed to make objective business decisions
about issues such as technology spending, and activity and resource
allocation by offering comprehensive project data, analytic tools,
and reports.
When the deal closes,
the products will be integrated into IBM’s software developer
platform (SDP) by its Rational group.
Update On The PeopleSoft/Oracle Brawl
PeopleSoft seems to be rearranging itself in
the hopes that it will be better able to negotiate with Larry
Ellison and Oracle, it’s about to be owners.
It’s fired former CEO Craig Conway (although providing for
him more than well). It’s
leaked rumors that its board would entertain new offers from Oracle,
no doubt flinching as Oracle hints that the new offers will be
lower, not higher, as PeopleSoft was hoping.
And barriers to the deal going forward seem to be melting.
The US courts and the US government do not intend to stand in
the way of an Oracle takeover.
They’ve decided Microsoft COULD be competition some day.
In
the meantime, PeopleSoft users (who met in San Francisco the week of
September 20th are still not thinking “Oracle.” They seemed to prefer talking about technical issues with
their software rather than strategic ones of who their vendor might
be in a year. Customers may see themselves as powerless, rather than
being in denial in the volatile situation.
So
for the customers, everything hinges on two issues now:
-
Will Oracle make a successful takeover bid?
We’d say, looking at a weakened PeopleSoft, that absent a
white knight this seems likely.
But PeopleSoft announced a profit this week, so perhaps
it’s not as weak as it seems.
-
If Oracle takes over what will they do with the PeopleSoft
customers and the PeopleSoft IP?
Originally, Ellison seemed to regard the PeopleSoft IP as
largely useless and the customers as a way to increase Oracle’s
installed base and revenue. However,
as time went on, in an effort to enlist the customers to his side,
Ellison has stated that Oracle would support the PeopleSoft software
for a reasonable length of time, perhaps five years. How that works out (or, rather, how customers think it will
work out and whether they decide to stay with Oracle or cut and run
to another vendor) will determine everything.
CA
Reorganizes And Prepares For Future M&A Activity
Computer Associates has announced a restructuring plan that
will cut its global workforce by 5%, deliver savings of about $70
million and allow it to pay the penalty it owes shareholders.
It
has been hinting that it will now be able to go back to its old (and
successful) mode, acquisition hunting.
In the old days (the 80’s and 90’s) no one was better
than CA in finding, buying (at low prices), and integrating software
companies. They were
tough minded, but they did a good job and they made money at it.
We suspect the hunt for acquisitions is on.
EMC Purchases Dantz To Enter The SMB Market
EMC
has been buying software, a lot of it, with 15 software acquisitions
in the last four years including Documentum, VMWare, Legato,
Luminate and Avalon, diversifying their way out of the storage
hardware market. Dantz
makes number 15th, offering EMC a way to sell into the
SMB market that it has traditionally avoided.
Dantz is expected to operate as a separate unit and to remain
in its California facilities.
Yahoo
Scoops Up Stata Laboratories
We
couldn’t decide whether to put this up with the search article
(with Microsoft and Google) or down here with the Acquisitions.
You decide.
Yahoo
has bought a search-based email specialty firm, Stata Laboratories,
with its email client Bloomba and its anti spam product SAproxy Pro.
The product was considered a competitor for Outlook.
Stata has said it will discontinue selling the products and
provide support to existing customers for one year.
Yahoo apparently has no plans to sell the Stata products, but
rather to use the Stata expertise to help Yahoo get to its
competitive goals.
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