Progress Software (Sonic MQ) has announced that it will acquire eXcelon (ObjectStore OODBMS, Javlin J2EE Cache, XIS XML database, Stylus Studio) in a $24 million all-cash buyout. Progress Software intends to integrate some of eXcelon's products into its Sonic XQ integration platform, as well as complement Progress' over all stack.
- Posted by: Floyd Marinescu
- Posted on: October 21 2002 18:44 EDT
Read Progress Software Corporation Signs Definitive Agreement to Acquire eXcelon Corporation and Sonic Extends Enterprise Integration Platform.
- Progress Software to Acquire eXcelon by Thomas Mattson on October 22 2002 07:03 EDT
- Progress Software to Acquire eXcelon by Bart Kooijman on October 22 2002 16:52 EDT
man, software companies are cheap these days....
> man, software companies are cheap these days....
But remember that the original post stated:
> a $24 million all-cash buyout
$24 million in cash might be worth more than $300 million in stocks a year ago...nice that the software industry is back on planet earth again....
Thomas: "$24 million? man, software companies are cheap these days...."
It sure looks that way, doesn't it? Remember, there's always more to the deal than the headline, so Progress may be taking on debts from eXcelon (often the debts are larger than the cash/stock transaction), and if one buys a company that is losing money (e.g. costs > revenue), then one must cut those costs or increase revenue, or the bottom line will suffer. Cutting costs usually costs money in the short term (software is notoriously labor intensive, and highly skilled labor is notoriously expensive to cut back on due to severance packages etc.) Attempting to increase revenue often costs money too (marketing, sales).
All that said, Progress has shown an ability to make quite a bit of money from the companies that it has bought. It looks like Charles Wang (CA) might have some competition.
Coherence: Easily share live data across a cluster!
It may seem low when taken out of context, but it is $1MM over their market cap, and represents nearly one full year of revenues. From a shareholders point of view I might find that quite a nice offer.
Personified Technologies LLC
This move seems to be a good one for Progress in terms of further enhancing their Sonic XML products. But adding ObjectStore and Javlin to it's product line is a little bit confusing.
It could be a great enhancement to their AppServer but it might interfere with their RDBMS. It seems to me that they are the first software vendor with both a RDBMS and a true ODBMS.
I think the Progress (database) consultants will at least have to learn the differences :-).