Ascential Software, the global enterprise data integration leader, has announced a definitive agreement to acquire Mercator Software, a provider of data transformation and routing solutions designed for complex, high-volume transaction processing environments.
The acquisition, structured as a cash tender offer, is valued at $106 million. This combination is expected to create the largest independent enterprise data integration software company, with current annualised revenues of $250 million, 900 employees and more than 3 000 customers.
"Mercator`s offerings are widely recognised for their ability to address high-performance, real-time, complex data integration requirements, and they are a natural complement to Ascential`s offerings," says Julian Field, MD of South African Ascential distributor CentterField Software. "The combined technologies, distribution channels, partnerships, geographic coverage, and skill sets expand the size and scale of Ascential.
"They will allow customers to apply the comprehensive data integration platform throughout their company, to support transactional, operational and analytical application environments, regardless of data volumes or latency."
The combined company:
* Extends and deepens Ascential`s resources for technology innovation, customer value and global reach;
* Adds solutions, expertise, customers and partners in key vertical markets including finance, healthcare, retail, manufacturing and distribution;
* Elevates the visibility and strategic importance of Ascential in the enterprise IT community; and
* Leverages Ascential`s business model by accelerating profitability and growth, enhancing earnings while retaining substantial financial resources.
"Mercator and Ascential each have a history of successful innovation that provides superior customer value," says Roy C King, chairman and CEO of Mercator. "The combination of our complementary technology provides Mercator customers the opportunity to benefit immediately from Ascential`s scalable suite of data profiling, data quality, transformation and metadata management, as well as its Real-Time Integration (RTI) Services that enable on-demand data integration in line with customers` business processes.
"Ascential`s customers can also benefit from Mercator`s expertise in transaction-oriented data transformation and routing; industry-ready integration solutions; and adaptors for an extensive universe of platforms, servers and other requirements of critical business technology."
Ascential expects the acquisition to be accretive to earnings in its first year of combined operations, as a result of cost synergies, cross-selling opportunities and new revenue streams resulting from the companies` complementary products, channels and geographic presence.
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