Pervasive to Buy Data Junction

 
 
By Lisa Vaas  |  Posted 2003-08-11 Print this article Print
 
 
 
 
 
 
 

The company hopes to launch a new era of information integration with the help of Data Junction's technology—and will retain all hands to do so.

Pervasive Software Inc. is buying Data Junction Corp. in a deal worth $51.7 million, company officials announced on Monday. Pervasive, an Austin, Texas, maker of embedded database technology and other data-management solutions, will purchase Data Junction for $22.1 million in cash and 5 million shares of Pervasive common stock. The total transaction value is based on Pervasives closing price per share of $5.91 on Friday.
The transaction was unanimously approved by the boards of directors of both companies and is now subject to the approval of both companies shareholders. The deal is expected to close in the fourth quarter of this year.
Data Junction, also of Austin, is a privately held company traditionally associated with ETL (extraction, transformation and loading) software. It has also recently been delving into EAI (enterprise application integration) technology: In February, it announced Integration Architect, an integration broker designed to tie together systems and applications. Pervasive has also been branching out: In April it acquired data security and auditing technology from ThinkNet Inc. Pervasive CEO David Sikora told eWEEK that the motivation behind the acquisition was threefold. First, the database and application integration marketplace is a "very attractive market that we think has a lot of significant upside and opportunities," he said. Second, Pervasives core customer base of thousands of business-application developers all have some sort of integration problem. "Each database, every product we ship and every application on top of it is empty, with no data in it," he said. "Those applications have to co-exist inside a broader IT architecture and work with other applications. Theres a synergy with our and Data Junctions product lines." Third, he said, the two companies are compatible in terms of company culture and profitability. Data Junction has been profitable since 1990, and Pervasive has been profitable for the past 10 quarters. Data Junction took in $14 million in revenues during the last fiscal year, with $2.7 in million in income. Pervasive took in over $39 million in revenues and $6.7 in income during the same timeframe. Next page: How the company will shake out.


 
 
 
 
Lisa Vaas is News Editor/Operations for eWEEK.com and also serves as editor of the Database topic center. Since 1995, she has also been a Webcast news show anchorperson and a reporter covering the IT industry. She has focused on customer relationship management technology, IT salaries and careers, effects of the H1-B visa on the technology workforce, wireless technology, security, and, most recently, databases and the technologies that touch upon them. Her articles have appeared in eWEEK's print edition, on eWEEK.com, and in the startup IT magazine PC Connection. Prior to becoming a journalist, Vaas experienced an array of eye-opening careers, including driving a cab in Boston, photographing cranky babies in shopping malls, selling cameras, typography and computer training. She stopped a hair short of finishing an M.A. in English at the University of Massachusetts in Boston. She earned a B.S. in Communications from Emerson College. She runs two open-mic reading series in Boston and currently keeps bees in her home in Mashpee, Mass.
 
 
 
 
 
 
 

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