Infotech Lead Europe: Software AG has acquired cloud platform supplier LongJump.
Software AG did not share financial details.
The acquisition of LongJump, based in the Santa Clara, Calif., enables Software AG to extend its customer offerings to address departmental and Small and Medium Enterprises (SME) projects through end-user, self-service application development.
Software AG will also continue to develop and extend LongJump’s Platform-as-a-Service products for fast and flexible cloud based development and deployment of situational and case management applications.
Wolfram Jost, CTO at Software AG, said: “With this latest acquisition we have taken a major step in optimizing both the business knowledge and IT skills needed to develop flexible, business process driven, situational applications and deploy them rapidly wherever they are needed.”
Pankaj Malviya, CEO and founder of LongJump, said: “LongJump can now leverage Software AG’s strength in enterprise connectivity and business process to provide business users and IT departments with more agility to respond to changing business requirements.”
Meanwhile, Software AG’s revenue for the first quarter of 2013 declined to €224.9 million from €254.6 million due to decreased consulting revenue.
Net income declined to €27.2 million from €35.9 million.
Software AG reported license revenue growth of 19 percent in its largest business line, Business Process Excellence (BPE), in the first quarter of the current fiscal year.
To fuel dynamic growth, Software AG plans to drive its growth initiatives with targeted investments in the BPE business line during the course of the current fiscal year.
Software AG CEO Karl-Heinz Streibich said: “There is unprecedented demand for products around the four technological megatrends: Big Data, Cloud, Mobile and Social Collaboration.”
The BPE business line made the largest contribution to total revenue with growth of about 14 percent (at constant currency) to €90.3 million (2012: €80.6 million).
The traditional Enterprise Transaction Systems (ETS) database business generated €64.5 million (2012: €76.6 million) in the first quarter.
The Consulting business line, which comprised the services of BPE, ETS and IDS Scheer Consulting for the first time this quarter, posted revenue at €70.1 million (2012: €97.4 million).
As part of the realignment of its SAP consulting business, Software AG continues to withdraw from unprofitable markets and to focus on process optimization for SAP applications in the German speaking region. The sale of its North American SAP-related service activities in January 2013 was a major step in this direction.
