Software AG Planning IDS Scheer Takeover

July 15, 2009 · Filed Under Companies

Software AG is planning to purchase IDS Scheer AG in a friendly takeover, offering €15 per outstanding share.

Software AG today closed a contract with August-Wilhelm Scheer and Alexander Pocsay for the transfer of ca. 48% of the outstanding shares of IDS Scheer AG, Saarbrücken. The sale of these shares will be part of a public tender offer by SAG Beteiligungs GmbH, a wholly-owned subsidiary of Software AG, starting in the current quarter. Software AG will offer €15 in cash per outstanding share. This represents a purchase price for the entire share capital of around €487 million. After obtaining regulatory approval, the formal offer period will start in August and finish before the end of September.

According to Software AG, the transaction will create a global producer of infrastructure software and business process management software with more than 6,000 employees and more than €1 billion in revenue. “Software AG’s strengths – technology leadership in middleware software, financial strength and a global presence – will complement IDS Scheer’s strengths – the modeling, implementation and controlling of business processes, a strong partner network and a large service presence in their approx. 7,500 customer base. IDS Scheer also offers extensive industry expertise and direct access to vertical markets and a strong presence in the consulting business,” as they say in Darmstadt.

IDS Scheer founder Dr. August-Wilhelm Scheer stated: „After 25 years of success, it is now the right point in time for IDS Scheer AG to reach new horizons. Software AG and IDS Scheer AG will further strengthen Germany’s international position as IT location. To this respect, both companies strategically match up outstandingly in the product and consulting area. The employees of IDS Scheer will have an even more global future perspective, ARIS methodology will internationally be even stronger positioned. I am optimistic for the joint development of both companies.“

Peter Gérard, chairman of the management board of IDS Scheer AG, stated: „IDS Scheer AG is interested in gaining long-term oriented strategic investors. In particular in the current phase, IDS Scheer AG is open for investors like Software AG which strengthen the value-added chain and the development of sustainably profitable business fields with their know-how. After the successful restructuring of the company in the last year, the management board’s next goal is to redefine the strategic options of IDS Scheer AG in a clearly more difficult market environment.“

The partnership between IDS Scheer AG and Software AG offers considerable added value to the customers, as they say in Saarbrücken. The transaction will create a global vendor of Business Process Management software with more than 6,000 employees and sales of more than EUR 1 billion. The strengths of Software AG in the areas of infrastructure software and SOA Governance, combined with IDS Scheer AG’s leadership in the worldwide markets of Business Process Management (BPM), Enterprise Architecture (EA) and process performance management, give rise to a leading vendor for infrastructure software and business process management. Particularly the strong consulting expertise with focus on SAP implementation is of strategic importance. IDS Scheer AG contributes to the planned undertaking a customer basis of approx. 7,500 companies globally as well as a wide partner network.

IDS Scheer develops solutions in Business Process Management (BPM) software, solutions and services for corporations and public organizations worldwide. With its ARIS Platform for Process Excellence, the company offers an integrated, comprehensive solution portfolio for the strategy, design, implementation and controlling of business processes. Around 2,840 employees in over 70 countries serve the company’s 7,500 customers. In 2008, IDS Scheer’s revenues reached €399.1 million. Established in 1984 by Professor August-Wilhelm Scheer, IDS Scheer is listed in the TecDAX on the Frankfurt Stock Exchange (Germany).

Software AG has 40 years of global IT experience and around 3,600 employees serving customers in 70 countries. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange (TecDAX). Software AG posted total revenues of €721 million in 2008. Software AG is, by its own account, the world’s largest independent provider of Business Infrastructure Software.

(picture: Headquarter Software AG, Darmstadt/Germany, source: Software AG)

Tags: IDS Scheer, IT, IT services, software, Software AG