Embarcadero Technologies, a privately-held company of Thoma Cressey
Bravo, today announced that they signed a definitive asset purchase
agreement with Borland Software Corporation (NASDAQ:BORL) to purchase
its CodeGear division. The transaction is expected to close in 30 to 60
days. By combining the market leaders in development tools and database
tools, Embarcadero will be able to address the growing productivity and
resource challenges companies face as a result of different applications
and diverse database platforms. With more than $100 million in annual
revenue and over 500 employees worldwide, the combined companies will
operate under the Embarcadero Technologies name.
"The application and database development
worlds are colliding and the synergies between these two companies make
this union timely and logical," said Orlando
Bravo, managing partner of Thoma Cressey Bravo. "This
acquisition will yield Embarcadero the financial strength, people and
product innovation to aggressively address the demands of this evolving
market," said Holden Spaht, Principal of Thoma
Cressey Bravo.
The acquisition of the CodeGear business is expected to make Embarcadero
the world´s largest, independent software
provider offering an integrated portfolio to design, develop, manage and
optimize heterogeneous applications and their databases. Customers and
partners will benefit from Embarcadero´s
ability to help fully integrate their application development lifecycle
automate error-prone tasks and dramatically increase their productivity.
In addition, Embarcadero gains a significantly larger sales footprint to
serve millions of software developers, architects, independent software
vendors (ISVs) and database professionals worldwide. The combined market
opportunity for Embarcadero and CodeGear products will represent more
than 15 million users worldwide and is expected to grow by up to 10
percent annually, according to industry reports.
"Today´s
announcement is great news for our CodeGear customers, employees
partners and the community at large," said
Jim Douglas, CEO of CodeGear. "This will give
us the resources to be even more aggressive and focused on our core
products and markets."
CodeGear serves a range of Java and Windows developers through its
award-winning JBuilder®, Delphi® and C++Builder® product lines, as well
as a new generation of web developers with its innovative products for
the PHP and Ruby languages.
"CodeGear is a recognized leader with a loyal
developer community and established global channels," said Wayne Williams, CEO of Embarcadero Technologies. "By
incorporating its strong product portfolio, Embarcadero will be
positioned to expand into new markets and develop cutting-edge products
that are a quantum leap for the industry. The combination of our
companies will unlock enormous potential for our customers and partners."
Embarcadero expects to pay a purchase price of approximately $23 million
to Borland for the CodeGear assets and Borland will retain CodeGear
accounts receivables which are estimated to have an approximate value of
an additional $7 million. Other material terms will be disclosed in a
Form 8-K to be filed by Borland with the Securities and Exchange
Commission.
The transaction is expected to close by June 30, 2008. Until then
Embarcadero will continue to operate as an autonomous entity and
CodeGear will remain a division of Borland Software. Once the
transaction is closed, Williams will continue in his role and lead the
combined business.
About Embarcadero Technologies
Embarcadero Technologies, Inc. delivers professional grade database
tools that companies use to design, develop and manage databases and the
data they contain. More than 12,000 customers worldwide and over 90 of
the Fortune 100 rely on Embarcadero´s cross-platform tools to reduce
complexity, improve productivity and strengthen security. The company´s
flagship database tools include: ER/Studio, DBArtisan, Rapid SQL and
Change Manager. Founded in 1993, Embarcadero Technologies is
headquartered in San Francisco with offices in Melbourne, Australia
Munich, Germany and Maidenhead, United Kingdom. For more information
visit www.embarcadero.com.
About CodeGear
CodeGear from Borland Software Corporation (NASDAQ: BORL) delivers
innovative, high-productivity development tools for a wide spectrum of
software developers ranging from individuals to enterprise teams.
CodeGear products enable developers to freely develop on their platform
of choice while focusing on simplifying complex technologies and tasks
so they can concentrate on application design, not infrastructure, to
enable on-time project delivery. With more than 3.2 million users in
more than 29 countries, CodeGear supports some of the most demanding
vertical industries including financial services, telecommunications
manufacturing, healthcare and government. To learn more about CodeGear
and its products, visit www.codegear.com.
CodeGear. Where Developers Matter.
About Thoma Cressey Bravo
Thoma Cressey Bravo is a leading private equity investment firm that has
been providing equity and strategic support to experienced management
teams building growing companies for more than 27 years. The firm
originated the concept of "industry
consolidation" or "build
and buy" investing, which seeks to create
value through the strategic use of acquisitions to accelerate business
growth. Through a series of private equity funds, Thoma Cressey Bravo
currently manages approximately $2.0 billion of equity capital. In the
software industry, Thoma Cressey Bravo has completed 34 acquisitions
across 12 platform companies with total annual earnings in excess of
$500 million. For more information on Thoma Cressey Bravo, visit http://www.tcb.com.
Forward-Looking Statements
Statements made in this release that are not historical facts are "forward-looking
statements" and accordingly involve risk and
uncertainties that could cause actual results to differ materially from
those described in this release. Forward-looking statements include, for
example, all statements relating to the closing of the transaction and
the projected financial performance and plans and objectives of the
combined businesses. The potential risks and uncertainties that could
cause results to differ materially include, among others, the closing of
the transaction and the ability of management to predict the financial
and business performance. Neither Embarcardero nor Borland intend to
update this information to reflect future events or circumstances unless
required by law.
Embarcadero, the Embarcadero Technologies logos and all other
Embarcadero Technologies product or service names are trademarks or
registered trademarks of Embarcadero Technologies, Inc. All other
trademarks are property of their respective owners. CodeGearâ„¢, JBuilder®, Delphi® and C++Builder® are trademarks
or registered trademarks of Borland Software Corporation or its
subsidiaries in the United States and other countries.
