NEON Systems, Inc. announced its entry into a definitive agreement to acquire InnerAccess Technologies, Inc., a privately held mainframe integration software vendor based in Toronto. InnerAccess Technologies provides the industry's first one-step configuration solution for mainframe Web Services, a key enabling technology for the reuse of mainframe resources in modern service-oriented architectures. 

According to NEON's management, the acquisition will: 

  •  Add a state-of-the-art mainframe Web Services interface to NEON's Shadow product set, which gives NEON's existing 250+ customers immediate access to a service-oriented architecture for legacy application reuse.
  • Add an additional 80 high-quality customers to NEON's roster, expanding its cross-sell market for existing and planned Shadow products.
  • Deepen NEON's existing expertise in Web services. 
  • Extend NEON's coverage of legacy environments through the addition of the InnerAccess integration products and skill set for Advantage CA-IDMS. 

"NEON's strategic advantage is its ability to deliver, what we believe is, the only unified mainframe integration platform to support the entire range of requirements for modern service-oriented architectures and emerging event-driven architectures. This acquisition serves to strengthen NEON's leadership position in its core mainframe integration market," said Mark Cresswell, president, NEON Systems.
"Importantly, the InnerAccess z/Services software is remarkably similar in structure to NEON's Shadow technology. This will enable NEON to rapidly interweave the rich functionality of zServices into its Shadow platform. For customers, this broader, integrated product set will provide a real opportunity to reduce total cost of ownership, risk, and streamline incumbent technologies associated with mainframe integration. We are thrilled to welcome the InnerAccess team to NEON. Enriching the NEON organization with this demonstrable talent in the field of Web services is a key element to the value of this transaction," added Cresswell.

"We are delighted to join forces with NEON Systems, a recognized leader in mainframe integration. The combination of our industry-leading Web services technology with NEON's robust capability for real-time integration of mainframe services and events creates a distinctive, new value proposition for customers who want a single, industry standard solution for enabling a broad range of mainframe databases, programs and screen environments," said Jean-Daniel Begin, CEO, InnerAccess Technologies Inc.

InnerAccess Technologies' customers include Pacific Life Insurance Company, Holland America Line, Michelin Tire of America, Progressive Insurance, and Sallie Mae, the nation's leading provider of education funding. InnerAccess Technologies Product Set InnerAccess Technologies' portfolio of z/Services mainframe integration products for CICS, IMS and Advantage IDMS includes:

  •  z/Services Web Services Client: Invoke Web services from CICS, IMS, IDMS and batch mainframe applications
  • z/Services Transformer: Publish CICS, IMS, IDMS application programs as Web services using SOAP and WSDL
  • z/Services Components: Introspection-based Web enablement for CICS, IMS, IDMS applications without terminal emulation or screen scraping
  • z/Services Studio: Developer tools to quickly Web enable CICS, IMS, IDMS applications as ASP/JSP pages. Code Scribe merges multiscreen processes into scenarios that can be published as ASP, JSP or Webservices applications
  • z/Services OCA Extenders:  extended connectivity options for AdvantageCA-IDMS 

Closing of the proposed acquisition is conditioned on, in addition to customary closing conditions, the satisfactory completion of certain outstanding due diligence items, the receipt of regulatory approval of the proposed acquisition or an exemption therefrom in Quebec, and approval by the shareholders of InnerAccess. Upon the closing of the proposed acquisition, the InnerAccess shareholders will receive total cash of $2.4 million U.S. dollars and 407,123 shares of restricted NEON common stock. NEON and InnerAccess currently anticipate that the proposed acquisition should be closed by June 30, 2004. Cabrillo Advisors, LLC served as NEON's financial advisor on this transaction.

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