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Informatica Heads for E-Business

Written By: M. Reed
Published On: January 5 2000

Event Summary

"PALO ALTO, Calif., Dec. 15 /PRNewswire/ -- Informatica Corp. (Nasdaq: INFA), the company whose software provides the infrastructure powering some of the world's most advanced business intelligence systems, today announced the acquisition of Influence Software, a leading provider of analytic applications for the e-business value chain. The combination of the two companies' products will enable Informatica to deliver the industry's first analytic solution optimized to address the multi-channel requirements of industrial-strength "B2B" e-businesses. Informatica is acquiring Influence Software for roughly $80 million in a stock transaction.

The transaction will be treated as a pooling of interests. The acquisition marks a realization of Informatica's vision to become the leading provider of packaged analytic applications for B2B e-business. According to analysts at Forrester Research, the overall e-business market is expected to grow to $1.3 trillion in 2003, with $1.1 trillion spent on B2B solutions as big businesses embrace e-business. Informatica's new analytic applications will address a critical need -- helping large, multi-channel corporations gain insight into the performance of their complete e-business value chains, including the productivity, efficiency and quality of their buying and selling relationships with customers, suppliers, marketplaces and trading partners."

Market Impact

According to Informatica, "the business-to-consumer ("B2C") segment of e-business has captured much market attention. Somewhat overlooked are the many established big businesses, or "brick and mortar" companies, with multiple supplier, sales and distribution channels who are today aggressively pursuing e-business solutions to help them automate, analyze and optimize such critical operations as procurement, logistics, inventory management, supplier efficiency and customer satisfaction." If Informatica has bet correctly, they will have a head start on many of their competitors, such as Ardent Software (currently being acquired by Informix), Computer Associates, and Sagent Technology.

User Recommendations

Customers involved in e-business should consider Informatica's solution as part of a long list of vendor prospects. It remains to be seen how well Informatica has integrated Influence Software's solution with their PowerCenter and PowerMart product lines. Given that they have had an OEM agreement with Influence for most of 1999, many of the integration issues should have already been addressed. This merger should be of special interest to customers engaging in Extended Supply Chain and e-procurement efforts.

 
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