Nov. 5 (Bloomberg) -- Software AG, Germany’s second- largest software maker, raised full-year targets for revenue and profit margins after the integration of IDS Scheer AG.

Full-year revenue will be between 835 million euros ($1.24 billion) and 845 million euros in 2009 with a margin on earnings before interest and tax of between 25 percent and 25.5 percent, the Darmstadt, Germany-based company said in an e- mailed statement today. It previously forecast an Ebit margin as low as 24.5 percent, and sales growth between 4 percent and 8 percent for total revenue of as much as 778.33 million euros.

“If the economy improves, and there are first signs, then we have potential for improvement” in sales in the coming six to nine months, Chief Executive Officer Karl-Heinz Streibich said in an interview from Frankfurt.

Software AG acquired IDS Scheer in July to gain customers and expand in services for products from SAP AG, the country’s largest software maker. It was the largest purchase in Software AG’s 40-year history. Software AG holds more than 90 percent of IDS Scheer, it said Oct. 23.

Third-quarter net income rose 23 percent to 38.1 million euros from a year earlier. Ebit climbed 16 percent to 56.4 million euros, beating the 43 million-euro average estimate of 10 analysts surveyed by Bloomberg. Sales jumped 19 percent to 213.6 million euros, topping the 182.1 million-euro average estimate of 11 analysts.

Software AG shares rose as much as 3.5 euros, or 5.6 percent, to 65.42 euros and traded at 63.51 euros as of 10:29 a.m. in Frankfurt trading, giving the company a market value of 1.82 billion euros.

Partnership Plans

Software AG will extend its partnerships with companies such as SAP to boost growth as it aims to become the second-biggest software company in Europe, Streibich said.

“SAP is a lighthouse in the software market and therefore we want to extend our product range in its direction,” Streibich said.

Software AG’s annual sales with IDS Scheer will rise to about 1.1 billion euros in 2010, Streibich said. Software AG won’t make any acquisitions in the short term in 2010 unless there is a “super opportunity,” he said.

To contact the reporter on this story: Claudia Rach in Berlin at crach1@bloomberg.net

Last Updated: November 5, 2009 04:33 EST