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Software AG to Acquire webMethods


By David Worthington
April 5, 2007 — 
Today, Software AG made a US$546 million cash tender offer to acquire webMethods, a business integration and software company. The combined company will compete in both the SOA and Business Process Management markets with a customer base of more than 4,000 organizations and 100 partners.

Jason Bloomberg, an analyst with ZapThink, commented on the acquisition: "This is huge news in the SOA space, because the combination of Software AG and WebMethods is now second only to IBM in terms of both traditional integration and SOA capabilities."

Bloomberg continued, "This is a market share play and a SOA play entirely. Software AG gets a much stronger North American presence, and they can now leave the likes of TIBCO and Oracle in their dust."

ZapThink analyst Ron Schmelzer questioned whether or not we are witnessing the emergence of a new mega-global brand. The acquisition rounds out Software AG's product portfolio with new capabilities in the integration process and governance areas; it also provides Software AG with repository metadata management capabilities from webMethod's Infravio.


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