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Software AG goes for webMethods

US$546m acquisition is expected to lead to synergies through cost savings.

Software AG is buying webMethods for US $546 million to strengthen its service-oriented architecture (SOA) and business process management (BPM) offerings.

Announced this week, the acquisition will increase Software AG's customer base to over 4000 organisations and 100 partners around the world.

The vendor said customers would benefit from the greatly expanded product and service portfolio, and through the two firms' shared partner network, combined geographical strengths and complementary business models.

Software AG Middle East said the combined company's ability to leverage SOA and BPM services would bring huge benefits to the region in particular as firms modernised their legacy systems.

"The acquisition of webMethods by Software AG worldwide will create a strong industry-leading SOA and BPM product portfolio, which will benefit our client base in the Gulf in a huge way as we will also be able to offer them a best-in-class SOA solution," said Mohammed Al Fardan, Software AG Middle East managing director for the Gulf and Egypt.

Software AG said given the complementary nature of Software AG's and webMethods' businesses, it expected to recognise synergies through both revenue enhancement and cost savings.

The transaction is subject to regulatory conditions and is expected to close in the second quarter.

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