Enterprise software company Geac Computer has entered into a $52m definitive merger agreement to acquire Comshare, a corporate performance management software provider.
Paul Birch, president and chief executive officer of Geac, said that the most important aspect of the acquisition was that it shows "Geac is continuing to execute against its strategy for growth and reinvention of the company".
"It demonstrates our strong commitment to building and extending the value of our enterprise application systems to the evolving needs of our customers. Make no mistake, this is a customer-driven acquisition by Geac," he added.
Geac is after Comshare’s MPC suite, which includes products for various business performance management tasks including planning, budgeting, forecasting, financial consolidation and management reporting and analysis.
"I believe that the addition of the MPC product suite will increase the value of existing IT investment of our current customers as well as provide us with the opportunity, with a combined sales force, to aggressively target new customers," Birch said.
Dennis Ganster, president and CEO of Comshare, said the deal between the two companies was a natural fit and was "extremely beneficial to Comshare, its customers, employees and shareholders".
"With synergistic technologies coupled with access to Geac’s deep financial resources and a loyal global installed base of 18,000 customers, we will be well positioned to better capitalise on a growing market gained through competitive advantage," Ganster said.
"We are confident that there will be strong customer demand for our combined solution that will further validate the merit of this acquisition."
If accepted by Comshare’s shareholders, the acquisition should be final by August, at which time Geac would standardise on Comshare MPC for internal use by its worldwide divisions and begin to implement the suite, which will replace Geac’s existing budgeting and consolidation applications.
Geac’s acquisition is its latest purchase since buying Extensity - a provider of employee relationship management solutions - last March.
Lindsay Bruce writes for ITWorldCanada.com