Software AG edges closer to $1.3B vendor

Software AG, Europe's largest systems software provider, made a cash tender offer to acquire webMethods for approximately $546 million. The companies will serve a global base of 4,000-plus organizations and 100 partners with a service-oriented architecture (SOA) and business process management (BPM) portfolio spanning governance & enablement, business activity monitoring, application integration, and legacy modernization capabilities.

According to Washington-based Current Analysis, the deal strongly impacts the SOA and integration markets. Short term, the combined company serves eight vertical industries, which puts pressure on established competitors. Longer term, if Software AG is able to grow its professional services as planned—and successfully rationalizes the two product lines—it stands a very good chance of becoming a global powerhouse able to compete with the likes of Oracle, Sun, and IBM in terms of reach and capability.