Informatica Corporation, a provider of data integration and business intelligence software, announced the execution of a definitive agreement to acquire privately held Striva Corporation, an award-winning provider of mainframe integration solutions that Informatica has OEM'd for more than two years and branded as part of its PowerConnect family of products. Striva's patented technology, which includes mainframe solutions for high-speed bulk data movement and real-time change capture, will extend Informatica's leadership in comprehensive enterprise data integration and business intelligence.
Informatica is acquiring all of the capital stock of Striva in a cash and stock transaction valued at approximately $62 million, and the acquisition will be accounted for under the purchase method of accounting. The acquisition has been approved by the board of directors of each company and is subject to regulatory approval and customary closing conditions. Informatica expects the acquisition to be accretive to earnings before amortization of intangibles and stock-based compensation beginning in the second half of 2004.
According to market reports, 90 percent of Fortune 1000 companies still use mainframes with their mission-critical applications, and more than 70 percent of corporate data is stored on mainframes. This acquisition will position Informatica to extend the reach of its enterprise data integration and business intelligence software in order to meet the growing demand for mainframe integration across transactional, operational and analytical systems. With large government agencies and enterprises reinvesting in mainframe platforms for strategic initiatives such as homeland security, disaster recovery, fraud detection and security, mainframe usage and data volumes are growing faster than ever. META Group estimated that MIPS (millions of instructions per second) shipments would grow by 33 percent annually over the last several years, demonstrating the growing amount of computing that relies on mainframes. In addition, Giga Information Group recently found that mainframe and legacy systems comprise 20 percent of the data integration and data warehousing market.
“Indicators from Gartner research, surveys, and client feedback point to continued investment in and resiliency of the mainframe platform. Many large enterprises and government agencies remain committed to the mainframe and will continue to seek ways to leverage the valuable data assets housed there for purposes of business intelligence,” said Ted Friedman, principal analyst, business intelligence infrastructure team at Gartner. “As a result, interest in mainframe connectivity, data quality and data profiling continues to grow.”
By providing enterprises with Striva's patented technology for change data capture (CDC) and real-time and bulk movement, Informatica will deliver mainframe data propagation through intelligent, non-intrusive agents that do not require scarce and expensive IT resources. This mainframe data propagation gives customers the flexibility to choose between batch, on-demand or live real-time replication for data delivery. This enables customers to move large volumes of data in bulk as part of a data migration project, propagate data changed since the last pull to synchronize different systems during tight batch windows, or replicate changed data in real-time to continuously synchronize multiple disparate operational systems. Striva's technology provides enterprises with the benefits of an adaptive, real-time data integration architecture while helping them to leverage legacy IT assets.
The acquisition of Striva's mainframe connectivity technology will strengthen Informatica's leadership in adaptive data integration. By bolstering its data integration platform to meet the mainframe needs of enterprise customers, Informatica is sustaining its vision of providing customers with a single infrastructure that can handle and visualize any type of data, in any quantity, to and from any platform, in any timeframe - all without coding. Informatica will simultaneously extend the reach of change data capture beyond the mainframe while also bringing its PowerCenter and PowerAnalyzer products to the mainframe, offering customers increased technology deployment flexibility. Informatica will continue to deliver innovations in grid computing, and service-oriented and model-driven architectures, along with enhancements to its award-winning business intelligence software, PowerAnalyzer, in the coming months.
This proposed acquisition evolved from two years of partnership success. Striva's products are installed worldwide at leading Global 2000 enterprises and government organizations, including installations at over 130 Informatica customers. Informatica will also gain from Striva's focus on key vertical industries, such as government, financial services, healthcare and manufacturing. In addition, the proposed acquisition will reinforce alliances with joint partners such as Accenture, BearingPoint, EDS, HP, IBM, Sun and others.
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