Ascential Software Corporation, a provider of enterprise data integration, jointly announced a definitive agreement to acquire Mercator Software, a provider of data transformation and routing solutions designed for complex, high-volume transaction processing environments. The acquisition, structured as a cash tender offer, is valued at approximately $106 million. This combination is expected to create the largest independent enterprise data integration software company with current annualized revenues of approximately $250 million and more than 3,000 customers.

"Mercator's offerings are widely recognized for their ability to address high-performance, real time, complex data integration requirements and are a natural complement to our offerings," said Peter Gyenes Chairman and CEO, Ascential Software. "Our combined technologies, distribution channels, partnerships, geographic coverage, and skill sets expand the size and scale of our company, and allow customers to apply our comprehensive data integration platform pervasively, throughout their enterprise, to support transactional, operational and analytical application environments, regardless of data volumes or latency."

This combination:

  • Creates the largest independent software vendor focused exclusively on enterprise data integration with $250 million in annualized revenue and more than 3,000 customers.
  • Creates the industry's first and most comprehensive product set to support the full spectrum of data integration requirements regardless of data volumes or latency.
  • Extends and deepens Ascential Software's resources for technology innovation, customer value and global reach.
  • Adds solutions, expertise, customers and partners in key vertical markets including: finance, healthcare, retail, manufacturing and distribution.
  • Elevates the visibility and strategic importance of Ascential Software within the enterprise IT community.
  • Leverages Ascential Software's business model by accelerating profitability and growth, providing accretion to earnings while retaining substantial financial resources.

"Mercator and Ascential each have a history of successful innovation that provides superior customer value," said Roy C. King, chairman and CEO of Mercator. "The combination of our highly complementary technology provides Mercator customers the opportunity to immediately benefit from Ascential's scalable suite of data profiling, data quality, transformation and meta data management as well as its real-time integration (RTI) services that enable on-demand data integration in line with customers' business processes. Ascential's customers can also benefit from Mercator's expertise in transaction-oriented data transformation and routing; innovative industry- ready integration solutions; and powerful adaptors for an extensive universe of platforms, servers and other requirements of critical business technology. Each of our constituencies can benefit from the substantial scale, stability and global resources resulting from the Mercator/Ascential combination."
Ascential Software currently expects the acquisition to be accretive to earnings within its first year of combined operations, as a result of cost synergies, cross-selling opportunities and new revenue streams resulting from the companies' complementary products, channels and geographic presence.

Under the terms of the merger agreement, Ascential Software will promptly commence a cash tender offer for the outstanding shares of Mercator stock for $3 per share, which will be subject to certain conditions, as will be described in the offer to purchase, letter of transmittal and related documents. The tender offer is expected to close by the end of the third quarter, barring unforeseen circumstances. This acquisition has been unanimously approved by the board of directors of each company and is subject to regulatory and other customary closing conditions. Bear Stearns acted as an advisor to Ascential Software. J.P. Morgan Securities Inc. acted as an advisor to Mercator.

Register or login for access to this item and much more

All Information Management content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access