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Informatica, a
leader in data integration software, acknowledged late last week that it has completed
its acquisition of Siperian, known for its Master Data Management (MDM)
infrastructure technology. Informatica
will acquire Siperian by paying approximately $130 million in cash, on a fully
diluted basis. The company also
announced its financial results for Q4, with a 25% increase in license revenue,
and 10% increase in total revenues for the year. The Q4 results helped Informatica reach
$500 million in total revenue for year, a first for the company. Informatica’s revenue growth runs contrary
to industry trends declining revenues and the company is very optimistic about
the future with the Siperian acquisition. “Our acquisition of Siperian will
expand Informatica’s addressable market with an additional high-growth,
adjacent technology category, MDM infrastructure, and will further strengthen
our key strategic partnerships,” stated Sohaib Abbasi, chairman and CEO,
Informatica. “Informatica Data Integration and Data Quality have a proven track
record of enabling successful MDM projects. Together, we will advance
Informatica as a leader in this exciting MDM Infrastructure category.” The move bolsters Informatica’s market position
relative to IBM and OEM partner Oracle.
Forrester
Research estimates that the MDM software market will grow to $1 billion in
2010, with a current annual growth rate of 20%. MDM software is instrumental in helping organizations
keep data consistent and reliable as it is utilized. Informatica has had a relationship previously
with Siperian as a business partner.
Siperian has been successful in the life science market where it has an
impressive list of top tier customers including St. Jude Medical, Pfizer and
Johnson & Johnson. Some analysts
speculate that the Siperian acquisition may irritate Informatica’s partner
Oracle. CEO Abbasi down plays any
conflicts and says similar OEM relationship situations are common in the
industry. Based on the latest financial
results reported, it looks things are looking up for Informatica.
Related Links:
http://money.cnn.com/news/newsfeeds/articles/globenewswire/183045.htm
http://www.informationweek.com/news/business_intelligence/information_mgt/showArticle.jhtml?articleID=222600450