infoTECH Feature

April 08, 2011

Software AG Looks to Acquire Companies, Expand Relationship with SAP AG

Software AG is looking to acquire more companies and wants build its relationship with fellow German company SAP (News - Alert) AG, Reuters reports.

"We are very active in pursuing potential acquisitions and we always have a number of acquisitions on our radar screens," Karl-Heinz Streibich told Reuters during a recent trip to Israel, where he may be looking to buy a technology company.

They may make an acquisition in 2011, he added.

Software AG makes a small-to-medium size acquisition most years, and the company attempts a large acquisition every two-to-four years, Reuters (News - Alert) said. Software AG acquired IDS Scheer two years ago. "They have a very long-standing relationship with SAP and therefore we work together with SAP and look where there are areas where we can expand our activities," Streibich told Reuters.

"We are looking to make more deals together...we have a number of customer deals together and we are looking to improve our mutual business by combining our activities wherever it makes sense from a customer's point of view," he added in the interview with Reuters.

Software AG wants to double revenue every five to seven years, Reuters said. The company said some 50 percent of its growth comes from acquisitions and the balance comes from organic growth, Reuters adds.

Software AG bought seven companies at a total price of over $1.2 billion recently, Reuters said. The company has purchased three companies in Israel, and employs 360 people in Israel, Reuters adds.

"When there is something which would make sense for us we would be happy to buy an Israeli company again," Streibich told Reuters.

It is noteworthy that Software AG, as well as Nokia (News - Alert), was interested in purchasing GigaSpaces Technologies, a software company based in Israel, Israeli financial newspaper Globes reported. Globes estimated the purchase would fall between $50 million and $100 million.

In other recent news, TMCnet reported that Software AG announced a new solution – Software AG Cloud Ready, “which includes modeling, process management, Service-Oriented Architecture (SOA) and cloud integration offerings.”


Ed Silverstein is a TMCnet contributor. To read more of his articles, please visit his columnist page.

Edited by Janice McDuffee
FOLLOW US

Subscribe to InfoTECH Spotlight eNews

InfoTECH Spotlight eNews delivers the latest news impacting technology in the IT industry each week. Sign up to receive FREE breaking news today!
FREE eNewsletter

infoTECH Whitepapers