Thursday, 16 July 2009

Software AG Announces IDS Scheer Acquisition for €477 million

Software AG have announced their intention to takeover Business Process Modelling company IDS Sheer. For further details.

Software AG will purchase the outstanding shares of IDS Scheer in a cash-and-debt deal worth up to €482 million. IDS Scheer is a business process consulting firm with 19% of revenue contribution coming from licensed software products. In 2008 IDS Scheer had revenues of € 399 million.

The merger is subject to approval by German business regulators. Software AG has agreed to pay €15 per share to IDS Scheer shareholders in a voluntary public tender offer. The total value of the takeover offer amounts to approx. EUR 482 million. The projected accumulated annual revenue of IDS Scheer and Software AG together would be around 1.1 billion Euro.

The supervisory board of IDS Scheer AG, have committed to accept the takeover offer for all shares in IDS Scheer AG held by them, i.e. a total of 15,332,622 shares. Software AG expects to close the transaction in the fourth quarter.

  1. What impact will this acquisition have for the BPM sector?
  2. There are over 300 BPM / Workflow software vendors globally many small and medium sized companies. Who will be the new stars and who will suffer?
  3. Will this acquisition be a catalyst for a series of acquisitions in this sector?

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