There's no mystery surrounding what this company sells. Software AG specializes in business process management software, including XML-based database applications and enterprise software, transactional databases, and applications development. Software AG's customers use its products to link and manage a wide variety of IT assets, including business software, servers, databases, mainframes, and PCs. The company's services include consulting, maintenance, and training. Software AG has partnerships with leading tech companies such as IBM, HP, Fujitsu, and Microsoft. The company is Germany's second-largest software firm, behind SAP. It boasts about 10,000 customers in 70 countries.
Software AG has streamlined its product offerings to six main applications -- Adabas, ARIS, CentraSite, Entire Systems Management, Natural, and webMethods. The company continues to focus on its XML offerings for future growth, and is developing mobile access capabilities for its existing products. Software AG is also strengthening its existing partnerships and has formed new alliances with Vordel, iWay Software, and other firms with complementary technology and services.
Software AG has also used acquisitions in recent years to boost its capabilities in key strategic areas, beginning with the 2007 purchases of webMethods (enterprise application integration software) and Jacada (business process management software). The webMethods deal also increased Software AG's US presence, swelling its US-based workforce to more than 1,000 employees. webMethods accounted for almost 40% of the company's revenue in 2009.
The company acquired Zurich-based Teconomic in 2009 and finalized the merger with Germany-based IDS Scheer for about $668 million in 2010. The deals strengthened Software AG's position in the financial services market, as Teconomic and IDS Scheer each count several leading financial institutions in their home countries among their key customers. IDS Scheer's supply chain and CRM software helped to expand Software AG's business intelligence offerings. IDS Scheer accounted for 15% of Software AG's revenue in 2009.
The company bought UK-based call center software specialist ItCampus in a 2010 bid to build its business in that country and give a boost to its research and development operations. ItCampus customers have included Axa, Radisson, and Teleperformance, who have used the company's products to combine phone, instant messaging, voice recording, and email functions into their automated customer service systems. Software AG also bought New Jersey-based Data Foundations that year to expand its line of master data management (MDM) software for business performance applications.
In 2011 the company bought UK-based Metismo, a maker of software tools for mobile application developers, and Terrecotta, a developer of software used to improve the scalability of business applications, particularly for cloud computing purposes. Both acquisitions added technology that feeds into Software AG's effort to improve mobile and Web-based access of its enterprise software products.
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