Business Objects has agreed to acquire Crystal Decisions
in a $820m cash and stock deal, which will create a one-stop shop
for business intelligence software products.
"The combined company will be number one in each of the main
markets it serves," Business Objects chairman and chief executive
officer Bernard Liautaud claimed.
Business Objects specialises in ad hoc querying, reporting and
analysis tools, while Crystal Decisions focuses on enterprise
reporting.
With little overlap in the product lines, both companies'
offerings will continue to be supported after the takeover and the
combined sales team will sell all products, Liautaud said.
"Today the products have little overlap, but in the long term
both product teams have plans to overlap each other. We will
reorganise the research and development energies to . . . drive
them to new products in new areas of business intelligence that
have potential," Liautaud said.
Crystal Decisions president and CEO Jon Judge said combining his
company with Business Objects accomplishes "almost every strategic
imperative". "This is the defining moment for the business
intelligence industry," he added.
The deal, expected to close in the fourth quarter and subject to
customary conditions such as shareholder and regulatory approval,
should also result in about $25m in cost savings next year.
Business Objects is seen by Gartner analysts as the business
intelligence market bellwether, and Crystal Decisions is seen as a
strong vendor.
Business Objects also announced preliminary results on Friday
for the second quarter, ending 30 June. The company expects revenue
to be in the range of $127m to $129m.
Joris Evers writes for IDG News Service