Progress Software is to buy DataDirect Technologies, a privately held company specialising in standards-based data access components for software developers, for the sum of $88 million.
DataDirect Technologies is the number one vendor of software components for data connectivity across disparate databases and platforms via ODBC, JDBC, and other industry standards.
DataDirect`s drivers simplify application development and support by delivering consistent data access across multiple platforms and databases, including Oracle, IBM DB2, Microsoft SQL-Server, Sybase and Progress. The company`s offerings are embedded in the products of over 250 top software companies and the applications of thousands of large enterprises, including 96 of the Fortune 100.
"Progress Software seeks leadership in all the markets it serves," says Rick Parry, MD of Progress Software South Africa. "DataDirect adds another profitable market leader that is complementary to Progress`s existing lines of business."
DataDirect recently expanded its product line to include 100%-managed ADO.NET providers and is already the leading supplier in this emerging market. In addition, DataDirect Connect for SQL/XML gives Java developers a consistent, standards-based approach to exchange data easily between XML and relational formats across all major databases. With DataDirect Connect for SQL/XML, developers can use SQL queries to create XML documents from relational data or consume XML documents and update relational data.
"DataDirect`s core strength is its focus on reliable, very high-performance, embeddable software components that support true and consistent implementations of industry standards," says Parry. "DataDirect stays at the forefront of data access through continuous innovations, such as its `wire protocol` technology that allows applications to talk to databases at the most basic level possible. Innovations like these provide performance improvements and make life easier for developers. Progress`s plan is to reinforce this focus. As part of a larger and financially strong software industry leader, DataDirect will lead the adoption of evolving data access standards, including emerging data formats such as XML."
"This deal is a win all around," says Steve McClure, a research VP in IDC`s Software Research Group. "Progress is getting a very healthy company that dominates an important niche. DataDirect gets the backing of a much larger company. The companies are a great fit together as they share the common business model of supplying other software developers with critical technology that makes their jobs easier."
DataDirect to benefit from Progress`s strength
"Progress Software has built solid, growth-oriented businesses with a reputation for excellent products," says Edward Peters, President and CEO of DataDirect. "By becoming part of Progress, DataDirect can better serve its customers with greater investment in our products, customer support, and expanded market presence, especially internationally.
"Customers should expect no change in DataDirect`s core business focus. We will continue to operate as a separate business offering embeddable data access components for the widest range of data sources and operating systems, including Linux and all major 64-bit platforms."
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