Software AG to acquire WebMethods

• By Joab Jackson
• Apr 06, 2007

Service-oriented architecture software provider Software AG is planning to acquire integration software provider WebMethods Inc. for approximately $546 million, the companies announced this week.

"The product portfolio is very complementary, as is the geographic reach," said Karl-Heinz Streibich, chief executive officer of Software AG, in a press conference announcing the sale.

Software AG initiated the purchase to increase its customer base in North America, Streibich said. It also provides the combined company with a wider range of software, ranging from Software AG's SOA governance software to WebMethods' application integration and business process management software.

Although traditionally concentrating on the corporate market, WebMethods has made efforts to serve federal agencies in recent years. The Internal Revenue Service used the company's software for some of its modernization efforts. The Defense Department used WebMethods' software for its EMall electronic procurement system. The company's flagship integration suite WebMethods Fabric recently received Common Criteria security certification from the National Information Assurance Partnership, paving the way for its use on networks carrying sensitive data.

In addition to government agencies, the WebMethods purchase should provide Software AG with entry to more federal system integrators.

"[Our] relationship with system integrators will also be significantly enhanced," Streibich said. "WebMethods has a real large group of partners, and this will be a real enrichment for Software AG."