Borland is to acquire TogetherSoft Corporation, which recently emerged as a serious competitor in the application development lifecycle market.
The deal values TogetherSoft at around $185m (£118.3m). Borland will pay $82.5m (£52.8m) in cash plus 9,050,000 shares of Borland common stock, currently valued at about $11.34 (£7.26) per share.
Borland said the move was part of a long-term strategy to cover all the major areas of the application development lifecycle. Integration of TogetherSoft's design and analysis technologies would enable companies to create business applications more quickly.
"TogetherSoft was a real potential threat to Borland," said Ian Charlesworth, senior researcher at Butler Group, who explained that the company was rated joint top in the analyst organisation's recent report on application development environments.
"Our praise centred on the company's focus on supporting the entire application lifecycle, combined with tools that aid developer productivity, including extensive modelling capabilities," Charlesworth added.
TogetherSoft's chairman and founder Peter Coad said the combined companies would be a powerful force in connecting programmers, designers and managers in real time.
A universal modelling language (UML) and design-driven development pioneer, Coad is expected to play a key role in building the combined software development infrastructure.
But according to Butler Group, Borland has a lot of work to do to plug holes and better integrate its Enterprise Studio development lifecycle products for Java and Windows. Integrating TogetherSoft's ControlCenter could be a major undertaking.
"While on paper Borland's Java Enterprise Studio covers the necessary areas, [Butler Group] felt it to be seriously lacking across the disparate elements," said Charlesworth.
Meanwhile TogetherSoft has also been involved in product integration. It acquired WebGain Studio from the now defunct WebGain Incorporated in August. This included the VisualCafe integrated development environment (IDE) and a UML modelling capability.
TogetherSoft also brings new Windows and .Net capabilities that complement Borland's Pascal-based Delphi IDE software, including support for Visual Basic, VB.Net and C#.
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