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San Francisco, USA & Darmstadt, Germany, May 23, 2011 – Software AG (Frankfurt TecDAX: SOW) today announced that it has entered into a definitive agreement to acquire Terracotta Inc. This acquisition will allow Software AG to provide innovative cloud solutions and dramatically increase the performance and scalability of its Business Process Excellence platform. Terracotta’s product portfolio provides leading edge in-memory technology and is the de facto caching standard for enterprise Java. Terracotta’s in-memory processing will provide the foundation technology for Software AG’s cloud offerings. With in-memory data access up to 1,000 times faster than database access, this will enable Software AG to increase revenue with existing and new customers through significantly larger business process excellence projects encompassing complex event processing, mobile technology, cloud distribution and virtualization. The acquisition also extends Software AG’s business model options by adding a large and thriving open source community.
Founded in 2003, Terracotta is a privately held company with 55 employees in development centers in San Francisco and New Delhi. With more than 500,000 deployments of the Open Source technology, including the majority of the Fortune 2000, Terracotta is behind some of the most widely-used software for application scalability, availability and performance.
This transaction will strengthen Software AG’s market leadership in Business Process Excellence. Terracotta will be the in-memory technology in the Software AG product stack, supporting a highly scalable product portfolio and enabling a much broader usage of Software AG’s products in the most extreme application conditions. Customers will now have the most advanced technology solution available for analyzing vast amounts of data more efficiently and cost-effectively. This will provide vital real-time business information and insights and greater control over business processes and operations.
"The integration of Terracotta’s technology with our product portfolio is a major step in ensuring that our customers can fully benefit from the convergence of cloud computing, the mobile web, complex event processing and real-time, multi-party collaboration through unprecedented levels of performance and scalability," said Software AG CTO Wolfram Jost. "Software AG is also committed to fully supporting Terracotta’s Open Source Communities in further developing this next generation in-memory technology."
The ability to scale the processing of massive loads of data across flexible, modular, geographically distributed architectures will also drive cloud adoption and transform Software AG into a full Platform-as-a-Service (PaaS) provider in the mid-term. Terracotta’s technology can store up to a terabyte of data in-memory. This will provide customers with an unprecedented boost to application and system performance and scalability.
"The combination of Software AG and Terracotta will provide enormous value to customers of both companies through a comprehensive software stack that supports the level of performance and scale required in private and public cloud infrastructures," said Amit Pandey, CEO of Terracotta. "Both Terracotta and Software AG are committed to further investment in our technologies and preserving the vibrant open source communities of Ehcache and Quartz."
Software AG expects to release the first combined products in the fourth quarter, 2011. The company’s cloud based Platform-as-a-Service (PaaS) roll-out will be in 2012.
The transaction has been approved by the Supervisory Board of Software AG. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in June, 2011
Software AG is the global leader in Business Process Excellence. Our 40 years of innovation include the invention of the first high-performance transactional database, Adabas; the first business process analysis platform, ARIS; and the first B2B server and SOA-based integration platform, webMethods.
We offer our customers end-to-end business process management (BPM) solutions delivering low Total-Cost-of-Ownership and high ease of use. Our industry-leading brands, ARIS, webMethods, Adabas, Natural, CentraSite and IDS Scheer Consulting, represent a unique portfolio encompassing: process strategy, design, integration and control; SOA-based integration and data management; process-driven SAP implementation; and strategic process consulting and services.
Software AG had revenues of €1.1 billion in 2010 and has more than 5,600 employees serving 10,000 enterprise and public institution customers across 70 countries. Our comprehensive software and services solutions allow companies to continuously achieve their business results faster. The company is headquartered in Germany and listed on the Frankfurt Stock Exchange (TecDAX, ISIN DE 0003304002 / SOW).
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Terracotta, Inc. is the leading provider of game changing Big Data management solutions for the enterprise. Its flagship product, BigMemory, is a Big Data in-memory solution that delivers performance at any scale. Terracotta's other award-winning data management solutions include Ehcache — the defacto caching standard for enterprise Java — and Quartz, a leading job scheduler. Terracotta supports the data management needs of a majority of the Global 2000 with over 2.5 million deployments of its products in 190 countries. Terracotta is a wholly owned subsidiary of Software AG (Frankfurt TecDAX: SOW). For more information, please visit www.terracotta.org.
We wanted to improve the stability of our web servers and our capacity to handle more partner activity as it was severely constrained. I needed the problem to go away. With Terracotta's Enterprise Suite, it did.Andre Zardini, CIO, Rewards Network