Event Summary
"MENLO PARK, Calif. and WESTBORO, Mass.-December 1, 1999-Informix (NASDAQ:
IFMX), the technology leader in the software infrastructure for the i.Economy,
and Ardent Software (NASDAQ: ARDT), the leading provider of data integration
infrastructure software for data warehouse, business intelligence, and e-business
applications, today announced that they have reached a definitive agreement
to combine their operations in a transaction valued, on a fully diluted basis,
at approximately $880 million, based on the closing price of Informix common
stock on November 30, 1999. The combination accelerates the strategies of both
companies and creates a $1 billion market leader in open software infrastructure
for the i.Economy."
According
to Jean-Yves Dexmier, president and chief executive officer of Informix, "In
today's i.Economy, businesses must continually update their product offerings
and business processes to remain competitive. The Web is where customers, partners
and prospects go to obtain information, buy products and get support. When competition
is just a click away, speed, convenience and a personalized experience are a
distinct advantage that can only be gained by directly linking what you offer
to what you know about your audience's needs and preferences. The combination
of Informix and Ardent is so compelling because it creates the market leader
for the business intelligence infrastructure that makes this integration possible."
"This transaction also represents a significant step in Informix's transformation
to a provider of open, database-independent solutions. Ardent's components and
solutions will continue to be marketed independently of the underlying database
technology. This is a clear demonstration of our commitment to be the leader
in the open software infrastructure for the i.Economy."
Market
Impact
Informix
has been losing market share and presence in the database arena, and has decided
to reinvent itself as an e-commerce solution company. Ardent Software has allowed
itself to be acquired by a company that was widely regarded as failing, partially
to gain access to Informix's worldwide sales and support organization (Informix
has a policy of 24x7 "follow the sun" worldwide support), and Informix has paid
a large premium for the company. Ardent can also leverage Informix's loyal customer
base and its' ability to manage large accounts. Informix gains a well-managed
company with a very successful product that includes extract/transform/load
and data cleansing capabilities. Only time will tell how successful this combination
will be. Ardent has always been database independent, and Informix has stated
that that Ardent will remain that way, but we feel that customers may now have
the perception that Ardent is in some way tied to Informix databases. This is
likely to affect Ardent's sales cycles, at least in the short term. It would
also be wise for Informix to allow the current Ardent management to retain control
over the DataStage portion of the business, as they have been very successful
to date, and understand their market space well.
User
Recommendations
Ardent DataStage is a strong offering, but we recommend that customers who can
afford to wait for Extract/Transform/Load tool selections give this merger some
time to be completed. It always takes time for vendors to integrate their research
& development, sales, and marketing staffs and resume normal operations.