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Spring 2000
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Informix, the technology leader in the software infrastructure for the i.Economy, and Ardent Software, the leading provider of data integration infrastructure software for data warehouse, business intelligence and e-business applications, have announced that they have reached a definitive agreement to combine their operations in a transaction valued, on a fully diluted basis, at approximately $880 million, based on the closing price of Informix common stock on November 30, 1999.
The combination accelerates the strategies of both companies and creates a $1 billion market leader in open software infrastructure for the i.Economy.
Under the terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, 3.5 shares of Informix common stock will be exchanged for each outstanding Ardent share and Informix will assume all outstanding Ardent options. The transaction is expected to be accounted for as a pooling of interests and to be accretive to Informix’s earnings per share in 2000, excluding non-recurring transaction-related costs. The transaction will be treated as a tax-free reorganisation for Ardent shareholders. Completion of the transaction, which is subject to the approval of stockholders of both companies and customary regulatory reviews, is expected to occur in the first quarter of 2000.
“In today’s i.Economy, businesses must continually update their product offerings and business processes to remain competitive. The Web is where customers, partners and prospects go to obtain information, buy products and get support. When competition is just a click away, speed, convenience and a personalised experience are a distinct advantage that can only be gained by directly linking what you offer to what you know about your audience’s needs and preferences,” said Jean-Yves Dexmier, president and chief executive officer of Informix. “Business intelligence is what gives you this insight, but winning in the i.Economy requires that business intelligence and e-commerce solutions be tightly integrated to drive dynamic content and commerce. The combination of Informix and Ardent is so compelling because it creates the market leader for the business intelligence infrastructure that makes this integration possible.”
“Informix has already established technology leadership in e-commerce infrastructure with the release of its Internet database Informix Internet Foundation 2000™, the acquisition of Cloudscape™ for distributed e-Business applications, the release of i.Reach™ and i.Sell™ Web solutions, and the release to some customers of Media360™, our digital asset management solution. Through the combination with Ardent, we become the first and only software provider that can offer all the components of an end-to-end integrated e-commerce and business intelligence solution,” added Mr Dexmier.
“This transaction also represents a significant step in Informix’s transformation to a provider of open, database-independent solutions. Ardent’s components and solutions will continue to be marketed independently of the underlying database technology. This is a clear demonstration of our commitment to be the leader in the open software infrastructure for the i.Economy.”
Henry Morris, vice president for data warehousing at International Data Corporation said: “Linking transactional and analytical cycles is essential to unlocking the strategic value of data generated by e-commerce systems. Businesses must be able to rapidly analyse and then respond to the latest Web-based data on customers and suppliers, delivering personalised content that impacts future Web transactions. With its focus on data transformation, metadata management, XML support and data quality, Ardent’s infrastructure initiatives address the new requirements for closed loop systems. Informix has an excellent opportunity to integrate these capabilities with its database server technology, enhancing its robust platform for building optimised e-commerce and analytical applications.”
Peter Gyenes, chairman, president and chief executive officer of Ardent Software said: “Ardent has established itself as the acknowledged leader in the data warehouse and business intelligence infrastructure market. Our capabilities in data integration consisting of data movement, metadata management, and data quality are widely recognised for their performance, scalability and breadth of functionality.”
“The next generation of business intelligence applications will pose data integration and data management challenges that, together, Ardent and Informix are uniquely positioned to address. Ardent’s products allow data of all kinds to be integrated from anywhere, including clickstream and other Web content, while Informix’s business intelligence engines excel at managing large volumes of content-rich data typical of the Internet. Additionally, this combination leverages our highly complementary skill sets, customer bases, global sales and services operations, and significantly expands our market reach. We believe that we will have an unparalleled platform for sustainable competitive advantage in the i.Economy,” added Mr Gyenes.
“Mergers, such as that between Informix and Ardent, are positive developments, as they bring both companies closer to delivering a data integration and business intelligence infrastructure that is optimised for e-Business,” said Aaron Zornes, executive vice president and director of META Group’s Application Delivery Strategies. “Giving customers a choice of proven individual products or the option of integrated data warehouse end-to-end solutions is a key to success. Our recent research on total cost of ownership for data warehouses shows that an integrated solution can drastically reduce such cost.”
Ardent Software LimitedLast Updated: 01 May 2000