October 18, 2010 – Software AG said Monday it plans to venture into master data management with the acquisition of Data Foundations Inc., a move that a leading analyst says allows the business process management company to make its market presence known.

Software AG, a $1.2 billion company, stated in a news release that it would sew Data Foundations’ operations and technology into its webMethods software and technology from ARIS BPM, which it gained in an acquisition last year.

Financial terms of the deal were not disclosed.

Ventana Research CEO Mark Smith says that Software AG’s acquisition to bring MDM into its portfolio follows lock-step with moves made previously by other software providers like Microsoft, Oracle, SAP and SAS. The payoff will be how the company is able to integrate MDM effectively across its BPM offerings.

“It is a required move to compete in the market. Software AG needs to step up and now make it known they are a player in the market,” Smith says.

Dr. Wolfram Jost, Software AG CTO, said in a news release that the acquisition and integration of Data Foundations would help his customers “more effectively deal with economic challenges and market changes.”

Mathew Manathara, CEO of Data Foundations, said in a news release: “The combination of our innovative and market leading MDM product lines with Software AG’s webMethods suite, and global market presence, will enable us to provide much greater value to our customers and significantly extend our customer base.”

Founded in 1998, Data Foundations is widely known for its OneData MDM platform, which received high marks from independent analysts, The Information Difference.

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