Embarcadero Technologies is buying CodeGear, a division of Borland Software, to appeal to application developers.
Embarcadero Technologies is looking to expand its appeal to application
developers with the acquisition of CodeGear,
a division of Borland Software.
The $23 million move is a play by Embarcadero, which specializes in database
design tools, to meet application and database developers on middle ground with
products that appeal to both groups.
CodeGear serves a range of Java and Windows developers with its JBuilder, Delphi
and C++Builder product lines, as well as Web developer products
for the PHP and Ruby languages. The addition of CodeGear's product
portfolio will allow Embarcadero to offer a more comprehensive tool set to
developers, Embarcadero CEO Wayne Williams
"Nearly every application today interfaces with a database, which means
that nearly every application developer-whether they're building C++, Java,
Ruby on Rails, PHP or Delphi-is routinely touching a database," Williams
The acquisition also gives Embarcadero a significantly larger sales
footprint, serving developers, architects, database professionals and ISVs
According to officials at both companies, the combined global market
opportunity for Embarcadero and CodeGear products will represent more than 15
million users, a number officials expect to grow by up to 10 percent
Borland officials spoke of selling CodeGear more than two years ago and
subsequently spun out the division, making it a wholly owned subsidiary. Once
Embarcadero completes the acquisition, the company will continue to
release new CodeGear products and support existing CodeGear
customer and partner contracts, Williams said.
"The integration of our combined portfolios will take place in stages
and, during that time, we will also evaluate features from all products, both
CodeGear's and Embarcadero's, for opportunities to add new functionality and
innovation into existing product lines," Williams said. "We will also
evolve our current and emerging products, while creating bundled products for
Embarcadero competes mainly against companies like BMC
Software, CA and Sybase. Jay Lyman, an analyst with The 451 Group, said
Embarcadero is still making up ground lost two years ago leading up to its
acquisition in 2007 by Thoma Cressey Bravo, a private equity firm.
"We indicated a year ago that while the cross-database support made sense,
Embarcadero needed to do more to differentiate itself," Lyman said.
"The purchase of CodeGear allows it to do so and effectively broadens Embarcadero's
potential beyond the somewhat limited database tools market to more developers
The transaction is expected to close by June 30.