Hyperion is to buy business intelligence software company Brio for $142 million. By adding Brio`s query and reporting capabilities to the Hyperion platform, the acquisition will extend Hyperion`s leadership as the world`s largest provider of business performance management software. The deal, approved by the boards of directors of both companies, is expected to close by the end of the year.
"The planned acquisition of Brio will advance our strategy of being the essential resource for companies committed to breakthrough performance everywhere," says Jeff Rodek, chairman and CEO of Hyperion. "With Brio, we will gain one of the most innovative and pioneering companies in business intelligence, and our customers will gain integrated query, reporting and analysis tools that are renowned for their ease of use, quick deployment, scalability and remarkable power.
"Brio has been a technology partner since 1996," continues Rodek. "We have seen first-hand the steady progress it has made with its products. With Brio, we will be able to deliver a complete solution for business performance management that unites strategic and day-to-day decision-making to achieve performance accountability across all business functions and at all levels, from the boardroom to the front lines. This transaction will be a significant win for stockholders, customers, partners and employees as we advance the power and reach of our business performance management solutions into every department - and to tens of thousands of users - throughout the enterprise."
"Brio and Hyperion share a passion for helping customers achieve breakthrough business performance," says Craig Brennan, president and CEO of Brio. "This combination creates the greatest ongoing value for Brio customers, by ensuring continued enhancement, support, and, ultimately, integration of Brio`s products into the industry`s leading business performance management platform. Our shared vision will benefit both existing and new customers."
The transaction will enable Hyperion to expand its addressable market and increase share in one of the software industry`s fastest growing categories. With Brio`s complementary solutions, Hyperion expects to capture customers earlier in the buying cycle when their needs grow from simple reporting against transactional systems to dynamic performance monitoring of key operational measures to KPI (key performance indicators) dashboarding.
Hyperion also expects that Brio`s improved corporate viability as a result of the acquisition will accelerate the adoption of Brio`s products.
"This type of rationalisation in the technology sector is good news for customers as it results in cost-savings which can be passed on to them," says Mark Scheepbouwer, CEO of GBI (Global Technology Business Intelligence), the local Hyperion distributor. "Customers also stand to benefit from the combined expertise of the two companies which will make Hyperion the largest player in its space."
Hyperion intends to extend and further integrate the Brio platform with Hyperion`s applications. Given the complementary nature of the two products, Hyperion expects over time to realise revenue synergies including cross-sell opportunities into the combined installed base. In addition, the two companies believe there are significant opportunities for operating cost savings.
Combined 12-month revenues for both companies total $613 million. Together, the companies have 2 700 employees. Hyperion has more than 6 000 customers and Brio more than 10 000 customers worldwide.
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