Software AG Sells SAP-Service Operations in North America to itelligence
*itelligence acquires Canadian and U.S. SAP business
*Strategic focus on processes in the global consulting business
*U.S. initiative in high-growth Business Process Excellence line to
RESTON, Va. -- January 8, 2013
Software AG (Frankfurt TecDAX: SOW) today announced that an agreement with
itelligence had been reached concerning the sale of its SAP-service operations
in Canada and the USA. The parties have agreed to maintain confidentiality
with regard to the purchase price. The transaction closing is scheduled for
January 16, 2013. With the sale, Software AG is pursuing its strategy of
focusing on processes in its consulting business. The company’s continued
expansion of North American sales and marketing activities for its dynamically
growing integration and process software business (Business Process Excellence
+ Terracotta) will not be affected by the sale.
The transaction includes all of Software AG’s SAP product-specific services in
Canada and the U.S., which are coordinated from Toronto and Reston, Virginia
respectively. Moreover, itelligence plans to acquire the majority of around 80
employees as of January 16, 2013. itelligence is a leading full-service
provider of IT solutions for the SAP market with approximately 2,700 employees
in 21 countries. Its headquarters are in Bielefeld, Germany.
The sale of Software AG’s SAP-related activities demonstrates consistent
implementation of its corporate strategy. The company’s consulting division
will intensify its focus on the process side of SAP environments in the
future. The Canadian and U.S. SAP service operations did not have this core
focus, as the division was acquired by IDS Scheer in 2003 from Austrian
software firm Plaut AG and had operated primarily as an SAP reseller.
“The transaction fits perfectly into the initiated realignment of our SAP
consulting business,” stated Michael Rehm, General Manager of IDS Scheer
Consulting. “Technologically speaking, we want to get back to our roots. IDS
Scheer has always stood for strategic process consulting. And, due to our long
tradition of expertise, this is where we can offer customers the greatest
added value. Geographically speaking, we will concentrate mainly on Germany,
Austria and Switzerland as our core markets.”
The transaction will have no impact on Software AG’s expansion of U.S.-based
sales and marketing activities aimed at the dynamically growing integration
and process software business and big data market. The company’s Business
Process Excellence (BPE) business line performed very well in the region in
the second and third quarters of last year with license growth above 20
percent. The Terracotta Big Data products also continued to show dynamic
The sale of the North American SAP consulting business will have no effect on
Software AG’s outlook for the full fiscal year as issued on October 30, 2012.
The company will release its 2012 financial results (IFRS, preliminary) on
January 29, 2013.
About Software AG
Software AG (FRA: SOW) helps organizations achieve their business objectives
faster. The company's big data, integration and business process technologies
enable customers to drive operational efficiency, modernize their systems and
optimize processes for smarter decisions and better service. Building on over
40 years of customer-centric innovation, the company is among the top 10
fastest-growing technology companies in the world and is ranked as a "leader"
in fifteen market categories, fueled by core product families Adabas and
Natural, ARIS, Terracotta and webMethods. Software AG has more than 5,500
employees in 70 countries and had revenues of €1.1 billion in 2011.
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itelligence is one of the leading international full-service providers of
solutions in support of SAP solutions, employing about 2,700 highly qualified
employees in 21 countries and in five regions (America, Asia, Western Europe,
Eastern Europe and Germany/Austria/Switzerland). As a frequently awarded SAP
partner, among others global value-added reseller, SAP Certified in Cloud
Services and SAP Gold Partner Business ByDesign, itelligence realizes complex
projects in the SAP solution-based environment for over 4,000 customers
worldwide. In 2006, itelligence obtained gold-level status as an SAP channel
partner as part of the SAP PartnerEdge™ program in Germany, and in the U.S. in
2007. The company’s services in support of SAP solutions range from consulting
and licensing to outsourcing and services to proprietary industry-specific
SAP. In 2011, itelligence generated total sales of EUR 342.4 million.
itelligence is “Top Consultant” 2012.
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