Under terms of the agreement, Sterling Software said it will pay $6.50 per share in a cash tender offer for Info Advantage. The transaction was approved by Info Advantage's board, and the holders of approximately 25 percent of its outstanding shares have endorsed the acquisition by signing stockholder agreements with Sterling.
Info Advantage, based in Minneapolis, develops and supports scalable enterprise business software. The company's MyEureka analysis engine was one of the first business-intelligence portals, giving users access to corporate information from a single point of entry, both companies said in a statement. MyEureka lets users tailor their personal portal according to their specific information needs and visual preferences.
Info Advantage has approximately 500 employees in 27 offices worldwide, with revenue of $70.7 million in 1998.
"The acquisition of Information Advantage brings together two powerful software companies who share not only a common vision but also complementary products and technologies," Sterling Software's chief executive Sterling Williams said in a statement. He added that Info Advantage's enterprise information portal will be combined with Sterling Software's Java-based query and reporting technology.
Earlier this week, Sterling Software also acquired CoreData, a developer and supplier of backup software for remote and mobile PCs. Sterling Software said that the cash purchase of CoreData marked Sterling's 34th acquisition and the second for the company's storage management business this year.
In today's announcement, Sterling Software also noted that the Info Advantage acquisition is expected to add to its earnings per share. Dallas-based Sterling said it has a worldwide installed base of more than 20,000 customer sites. The independent software maker said it has about 3,700 employees in more than 90 offices worldwide.
The Info Advantage acquisition deal is scheduled to close in late August, both companies said.