May 7, 2008 - Embarcadero Technologies signed a definitive asset purchase agreement with Borland Software Corporation to purchase its CodeGear division.


The transaction is expected to close in 30 to 60 days. By combining the development tools and database tools, Embarcadero will be able to address the growing productivity and resource challenges companies face as a result of different applications and diverse database platforms. With more than $100 million in annual revenue and over 500 employees worldwide, the combined companies will operate under the Embarcadero Technologies name.


"The application and database development worlds are colliding and the synergies between these two companies make this union timely and logical," said Orlando Bravo, managing partner of Thoma Cressey Bravo.


"This acquisition will yield Embarcadero the financial strength, people and product innovation to aggressively address the demands of this evolving market," said Holden Spaht, principal of Thoma Cressey Bravo.


The acquisition of the CodeGear business is expected to make Embarcadero one of the world's largest, independent software providers offering an integrated portfolio to design, develop, manage and optimize heterogeneous applications and their databases.


Embarcadero expects to pay approximately $23 million to Borland for the CodeGear assets and Borland will retain CodeGear accounts receivables, which are estimated to have an approximate value of an additional $7 million. Other material terms will be disclosed in a Form 8-K to be filed by Borland with the Securities and Exchange Commission.


The transaction is expected to close by June 30, 2008. Until then, Embarcadero will continue to operate as an autonomous entity and CodeGear will remain a division of Borland Software.

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