BEA Buys Fuego for $87.5 Million

Updated: BEA Systems acquires the business process management software maker in an effort to build out its SOA platform.

Continuing on its strategy of acquiring key technologies to build out its service-oriented architecture platform, BEA Systems Inc. on March 1 announced that it has acquired Fuego, a maker of business process management software, in a deal worth $87.5 million.

Plano, Texas-based Fuego specializes in providing SOA solutions to help companies orchestrate and continuously improve business processes.

Sources said the Fuego portfolio will become a part of San Jose, Calif.-based BEAs BEA AquaLogic product family and will serve as the foundation of the new BEA AquaLogic Business Service Interaction product line.

Fuego was founded in 1999 and has over 100 employees.

The companys customers include Southwest Airlines, United Healthcare, JPMorganChase and British Petroleum.

FuegoBPM is a comprehensive, advanced software platform for business process management.

Mark Carges, executive vice president of BEA, said BEA set out with a strategy of providing value in the SOA market, "and one of the key parts of that market is the business process management space. Fuego has been around for seven years, and this is an area they have pioneered."

Carges said BEA now can offer a unified SOA platform to integrate business processes, applications and legacy environments across the extended enterprise.

/zimages/1/28571.gifClick here to read more about BEAs efforts to position itself as a serious force in service-oriented architectures.

Moreover, he said the acquisition creates breadth and depth for a broader set of enterprise integration customer requirements, targets a high-growth market and new customer base, strengthens BEAs offering to line-of-business executives and IT, as well as establishes the foundation of the AquaLogic Business Service Interaction product line.

"Im ecstatic about this merger," said John Lauck, president and CEO of Fuego. "Its a perfect fit for our two companies."

Carges said that when BEA acquired Plumtree they found that Plumtree had a partnership with Fuego that BEA carried on. "It made sense to go into the BPM space."

"This acquisition is clear validation of the market size, growth rate and importance of the BPM category," said Rod Favaron, CEO of Lombardi Software Inc., an Austin, Texas-based BPM software provider and competitor to Fuego.

Marge Breya, chief marketing officer at BEA, said the business process management software market is one of the fastest growing segments within infrastructure software and is estimated to top $1 billion dollars by 2008.

Meanwhile, the acquisition will enable BEA to go after customers that dont have WebLogic or BEA technology.

"Well be looking to leverage new parts of existing customers or to get into completely brand new customers," Carges said.

Next Page: SOA strategy.