Software AG USA Planning to Acquire IDS Scheer

By Chris Preimesberger  |  Posted 2009-07-13 Print this article Print

The combination of Software AG USA and IDS Scheer "will create a global vendor of infrastructure software and business process management with more than 6,000 employees and more than $1.39 billion in sales," Software AG USA said.

The U.S. subsidiary of Germany's largest software company, Software AG, announced July 13 that it will acquire German business process management consultant IDS Scheer for $21 per share.

Software AG USA, based in Reston, Va., said that it has already agreed to buy out IDS Scheer's two biggest shareholders-co-founders August-Wilhelm Scheer and Alexander Pocsay, who together own 48 percent, or about 15.3 million shares, of the company's stock.

The offer represents a 39 percent premium to Monday's closing price of $15.10. The total purchase price would be more than $670 million.

Revenue for IDS Scheer was $558.1 million for 2008.

The combination of Software AG USA and IDS Scheer "will create a global vendor of infrastructure software and business process management with more than 6,000 employees and more than $1.39 billion in sales," a Software AG USA spokesperson said.

Software AG, headquartered in Frankfurt, Germany, is an international-class vendor specializing in data center middleware. If the transaction with the U.S. subsidiary is completed, it will be augmented by IDS Scheer's well-respected consulting skills to produce improved software that analyzes and maps business processes.

IDS Scheer also has a large partner network and service presence with about 7,500 customers.

Formerly Connected with SAP

IDS Scheer is, or was for a large part of its history, nearly synonymous with SAP, the major German competitor to Software AG. The two companies started working together about 22 years ago, when IDS Scheer's business process modeling software worked with SAP's R/3 software.

Several years ago, the two companies announced that SAP would integrate IDS Scheer's Aris process modeling platform into its NetWeaver integration platform.

In the past, August-Wilhelm Scheer said he would not sell his company, but he told a German magazine last year that he might if it could not retain profitability.

In the past several years, IDS Scheer had broadened its horizons, bringing in a number of partners on the platform front, such as Oracle, IBM, Microsoft, BEA and Fujitsu.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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