Sterling Software has entered into a definitive agreement to acquire Information Advantage (IA) for $163 million in cash and will integrate it into its Information Management subsidiary.
The move marks the continuance of a buying spree that started last year, when the software giant bought AS/400 tools vendor Synon for $78 million (see Newswire 24 June, 1998) and modelling tools supplier Cayenne Software for $11.4 million (see Newswire 29 August, 1998).
In March this year, it also acquired Interlink Computer Sciences for $654 million and made a bid for systems management company Spectra Logic, but last week also said it would buy Coredata for an undisclosed sum.
A Sterling spokeswoman said: "We see this acquisition propelling us to the forefront of the business intelligence marketplace. Information Advantage will become the epicentre of our Information Management group and the centre of gravity will be at their current headquarters in Minneapolis. We already have about 47 products in our Vision family, but IA is a much bigger force in that market than us."
She added that IA's Myeureka business intelligence portal would act as a front end to the Vision offerings in future, and the transaction would double the size of Sterling's Information Management group overnight. IA generated revenues of about $71 million last year.
Sterling will make a $6.50 per share cash tender offer for the company, which represents a 58 per cent premium over the 30 day trailing advantage of its shares.
This will be followed by a second step merger at the same price per share. IA's board and shareholders of about 25 per cent of the firm's outstanding stock have already approved the deal.
The tender offer is expected to start on 21 July and the transaction to close by August.
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