Progress Software Corporation and IONA Technologies, an established supplier of software integration technology, have jointly announced that they have signed a definitive agreement under which Progress has agreed to acquire IONA for $4,05 per share in cash.
This represents a total equity value of $162-million and approximately $106[million net of cash and marketable securities reported on 31 March 2008. The offer price per share is approximately 16% over the average price for IONA shares over the six months prior to the offer period announced by IONA on 8 February 2008.
The IONA board of directors has unanimously approved the transaction and each IONA Technologies director has entered into an agreement to vote in favour of the transaction.
On completion of the transaction, which is expected to occur in September pending regulatory approval in the US, IONA shareholder approval and issuance of an order by the Irish High Court, IONA would become an indirect wholly owned subsidiary of Progress Software.
The combination of Progress Software and IONA creates the industry choice for truly independent, heterogeneous service-oriented architecture (SOA) infrastructure. IONA products complement the Progress SOA Portfolio with leading-edge, best-in-class technology now with the widest variety of heterogeneous deployment options and interoperability.
IONA brings an experienced and talented team to Progress that has built a reputation with Global 2000 enterprises for addressing the most complex integration challenges through innovative and cost-effective solutions.
Through its Artix product line, IONA provides some of the industry's most advanced Web-standards based integration technologies in support of a SOA. In addition, IONA offers open source SOA integration components through its FUSE product line. For 15 years, IONA has been the industry leader in CORBA integration technology, a well established integration standard currently relied upon in mission-critical IT systems of some of the world's largest companies.
The IONA products complement the Progress SOA Portfolio, which consists of best-in-class products that can be used standalone or together to form an entire SOA infrastructure.
With the addition of IONA technology, legacy and high-performance applications written in C++ or those built to the CORBA standard can now expose reusable services that fully participate in a Web-standards SOA implementation. In addition, IONA also has "smart endpoint" integration with Microsoft's .NET Windows Communications Framework and the popular open source Spring Java application framework.
These smart endpoints, service-enabling almost all existing applications, can work in any IT environment through a wide variety of network protocols and are fully compatible with the Progress Sonic ESB to form a complete SOA "backbone" for heterogeneous integration and interoperability.
Numerous large enterprises use innovative and robust IONA technology for their highest performance, mission-critical systems primarily in the telecommunications, financial services, manufacturing, and government markets. These customers will now have access to all the complementary products in the Progress SOA Portfolio as they implement a SOA framework for integration of existing applications and for new development.
Joseph Alsop, co-founder and CEO of Progress Software, comments: "We are proud to inherit IONA's long history and reputation for developing some of the industry's most respected and well recognised technology for integrating mission-critical systems, often involving hundreds of applications and millions of transactions per day over diverse IT environments. We certainly expect to benefit by enhancing and extending these customer relationships and by leveraging IONA technology within products across our SOA portfolio.
"IONA products are complementary to what Progress offers today and IONA customers can rest assured that Progress is committed to the same high standards of support, product quality, and performance."
Peter Zotto, CEO of IONA, notes: "We could not have chosen a better partner in terms of commitment to customers, pursuit of technology excellence, and shared vision to be the industry's leading independent supplier of SOA infrastructure software. Progress is now the clear choice for SOA implementations in performance-demanding IT environments. Combining IONA's proven expertise in distributed system integration technologies with the Progress SOA portfolio will allow customers to achieve a better return on existing IT assets and future IT investments."