Quovadx Acquires Rogue Wave Software for $71 Million
Business-to-business integration software provider Quovadx Inc. announced Tuesday morning the acquisition of Rogue Wave Software Inc. in a deal valued at $71 million.
Rogue, of Boulder, Colo., makes reusable software components for application development.
The acquisition is structured as an exchange offer, with Quovadx acquiring all of Rogues outstanding stock for $4.09 in cash and 0.5292 of a share of Quovadx common stock for each share of Rogues stock. Quovadx is acquiring $33 million in cash as part of the deal; the value of the deal net of cash acquired is $38 million.
The deal, which is expected to close early next year, brings an established product line to Quovadx, of Englewood, Colo., and positions the company better to compete in both the Web-services and application-development markets.
Rogue also brings about 18,000 customers and over 300,000 software licenses to the table
Rogue, which provides C++ development software, has a focus in the financial services and telecommunications vertical markets, while Quovadx specializes in software for the healthcare and entertainment industries.
"This acquisition will allow us to advance our strategy of entering new markets and extending and strengthening our competencies in application development," said Lorine Sweeny, president and CEO of Quovadx, in a statement. "This is a natural progression of our evolution."
The transaction has been approved by the board of directors of each company.
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