Dallas, Texas and Minneapolis, Minn., July 16, 1999 - Sterling Software, Inc., one of the 20 largest independent software companies in the world, and Information Advantage, Inc., a provider of Web-based and enterprise business intelligence software, announced that they have entered into a definitive agreement for Sterling Software to acquire Information Advantage. The transaction is valued at about $163 million and will be structured as a $6.50 per share cash tender offer, followed by a second-step merger at the same price per share. The offer price represents a 58 percent premium over the 30-day trailing average of Information Advantage's shares. The transaction was approved by Information Advantage's board of directors, and the holders of about 35 percent of Information Advantage's outstanding shares have endorsed the acquisition by signing stockholder agreements with Sterling Software. The tender offer is scheduled to begin on July 21, 1999, and the companies anticipate closing the transaction in late August.
"The acquisition of Information Advantage brings together two powerful software companies who share not only a common vision but also complementary products and technologies," said Sterling L. Williams, president and chief executive officer of Sterling Software. Williams also noted that the acquisition of Information Advantage was expected to be accretive to Sterling Software's earnings per share.
According to Larry J. Ford, president and chief executive officer of Information Advantage, "This union creates a significant force in the business intelligence market. It's a great opportunity and I am tremendously excited for both our customers and our employees."
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