Cognos to buy planning software maker Adaytum
Business intelligence software maker Cognos Inc. Thursday announced it has agreed to acquire privately held Adaytum Inc.
Adaytum, based in Minneapolis, makes collaboration software designed for modeling, building and analyzing business plans. Products and services that would be available through a combined company would focus on a market Cognos characterizes as corporate performance management. That includes software for managing, analyzing and reporting on a large corporation's vast collection of data.
Cognos has agreed to pay US$160 million in cash for Adaytum, a company of 300 employees, and expects the deal to be complete in January, according to a statement issued after the close of the stock market. The purchase has already been approved by the boards of both companies but is subject to regulatory approval.
The acquisition should add roughly 1,500 customers to Cognos' portfolio, bringing its total tally to more than 22,000 customers around the globe, it said. Some companies on Adaytum's list include Toyota Motor Corp., Lockheed Martin Corp., Pfizer Inc., 3M Co., and American Express Co.
"Adaytum is a breakthrough acquisition for us," Cognos Chief Executive Officer Ron Zambonini said in a call with analysts Thursday. "We believe the addition of Adaytum will help us secure the undisputed number one position in (the business intelligence market)."
Although the purchase could affect fourth-quarter earnings, Cognos is buoying the deal with $338 million in cash and cash equivalents on its books at the close of its third fiscal quarter, which ended Nov. 30. Adaytum also isn't expected to drag down Cognos' finances, the company said.
"They've done a good job managing their business," said Tom Manley, chief financial officer at Cognos. Adaytum was near break-even in the recently completed quarter, he said.
Also Thursday, Cognos reported a profit of nearly $20 million for its fiscal third quarter. Cognos reported revenue of $138.1 million, an 11 percent increase compared to the $124.2 million collected in the same quarter last year. Net income for the third quarter was $19.9 million, or $0.22 per share, compared $13.3 million, or $0.15 per share, for the same period last year.
Cognos had been expected to earn $0.19 per share on revenue of $138 million, according to an average of analyst estimates compiled by Thomson Financial/First Call.
Not accounting for the impact of its planned acquisition of Adaytum, Cognos said revenue would increase in the current quarter to between $155 million and $157 million and earnings per share should come it at $0.28 or $0.29.
» posted by abennett
IDG News Service
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