Software AG wants to buy IDS Scheer, a software infrastructure and business process management software organisation that is best known for its success in the SAP implementation space.
To kick-start the buy-out, Software AG has signed a deal with Prof Dr August-Wilhelm Scheer and Prof Dr Alexander Pocsay for the transfer of 48% of the outstanding shares of IDS Scheer , whcih will be part of a public tender offer by SAG Beteiligungs, a wholly-owned subsidiary of Software AG.
Software AG will offer €15.00 in cash per outstanding share of IDS Scheer capital. 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. Having secured 48% of the shares it is not necessary to set a minimum quota.
The transaction will create a global producer of infrastructure software and BPM software with more than 6 000 employees and more than €1-billion in revenue.
Software AG boasts technology leadership in middleware software, financial strength and a global presence that will complement IDS Scheer’s strengths, which include the modeling, implementation and controlling of business processes, a strong partner network and a large service presence in 7 500 customer base.
IDS Scheer also offers extensive industry expertise and direct access to vertical markets and a strong presence in the SAP consulting business.
"Software AG and IDS Scheer complement each other perfectly. With the merger of two technology leaders we will create a globally significant company. Our expertise in business process management will be unique and will increase our competitiveness in this growth market," says Karl-Heinz Streibich, CEO of Software AG.
"Our robust business model and stable business performance enables Software AG to make this significant investment. We want to drive the strategic development of the company even in economically difficult times."
Prof Dr August-Wilhelm Scheer, major shareholder and founder of IDS Scheer, adds: "After 25 years of success, the right time has come for IDS Scheer to look to new horizons.
"Together, Software AG and IDS Scheer will further establish Germany as an international IT location. The two companies, both in product as well as consulting – make a perfect strategic fit. The staff of IDS Scheer benefit from even broader prospects in the future and the ARIS methodology will be sustainably established globally. I am optimistic about the joint development of both companies."