Software AG Acquires Alfabet AG and Strengthens Market Position

Dubai, UAE, June 16, 2013 – Software AG (Frankfurt TecDAX: SOW) has announced its recent acquisition of alfabet AG (“alfabet”). An agreement to this effect was signed by the company's owners and Software AG. The transaction is subject to antitrust clearance from the Federal Cartel Office.

Increasing digitization is challenging many enterprises to rethink and modernize their business models by implementing innovative cloud, mobile, social collaboration, and big data technologies. This makes it necessary to transform the enterprises' existing IT infrastructures. alfabet, a leading provider of Enterprise Architecture Management and IT Portfolio Management software, focuses on planning and optimizing IT infrastructures. Combining ARIS, Software AG's market-leading product for modeling and analyzing operational processes, with alfabet's products allows customers to tighter link the transformation of business processes with the simultaneous adaptation of their IT infrastructures.

alfabet was started in 1997 and employs altogether about 90 people in Berlin and other locations in Cambridge, Massachusetts (USA) and Singapore. The company's customer base includes 70 global companies such as Daimler, Volkswagen, BMW, Credit Suisse, and UBS. The transaction closing is scheduled for end of June; however, the transaction is subject to antitrust clearance from the Federal Cartel Office.

Erik Masing, CEO of alfabet, stated, 'Since our company was founded, we have experienced outstanding growth, and noted analysts from Gartner and Forrester have affirmed our market-leading position. We now face the challenge of marketing our solutions globally to maximize our potential. To do this, we need a global presence and a strong sales and consulting organization. We have found an ideal partner in global player Software AG. Our technologies complement each other perfectly.'

Software AG's CEO, Karl-Heinz Streibich, added, 'As enterprises become digital, the importance of optimizing IT landscapes and processes is growing. We will pool the core competencies of both companies and further expand our leading market position.'

Nicky Sheridan, SVP – Middle East, Africa & Turkey, Software AG, said: “The acquisition of alfabet AG marks a very important breakthrough that opens new possibilities for us to help Middle East enterprises implement an end to end Enterprise Architecture Management Suite that meets their requirements. Our clients in the region are increasingly taking advantage of the opportunities presented by the 4 forces which are mobile, cloud, social collaboration and big data. With the integration of alfabet into Software AG's core offerings, we are able to empower our clients to grow their business while embracing a more innovative, digital-based business model.”

alfabet's products are being integrated with the current offerings of Software AG, which will strengthen the company's Enterprise Architecture Management and IT Portfolio Management product portfolio.

This acquisition is consistent with Software AG's strategy to focus on expanding its dynamically growing business line for integration and process software (Business Process Excellence) in order to help customers digitize their enterprises around the 'four forces': mobile, cloud, social collaboration and big data. Software AG generated about €547 million in the Business Process Excellence segment alone in fiscal 2012. Licensing revenue in this business segment increased by 19 percent year-on-year in Q1 2013.

Posted by : PROCRE8, Colin Saldanha
Viewed 7070 times
PR Category : Technology
Posted on : Sunday, June 16, 2013  2:09:00 PM UAE local time (GMT+4)
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