Software AG

Last updated
Software AG
Company type Public
FWB:  SOW
Industry Computer software
Founded1969;55 years ago (1969)
Headquarters Darmstadt, Germany
Key people
  • Sanjay Brahmawar, CEO
    Totkam Khatibzade
    Gross Bernd
    Stefan Sigg
Products Digital Transformation & Internet of Things software and consulting including ARIS, webMethods, Adabas & Natural, NaturalONE, Apama, Cumulocity, Zementis, Alfabet, Mashzone Nextgen, CONNX, and Terracotta
RevenueIncrease2.svg €958.2 million (2022) [1]
Decrease2.svg €75.6 million (2022) [1]
Decrease2.svg €19.2 million (2022) [1]
Total assets Increase2.svg €2678.4 million (2022) [1]
Total equity Increase2.svg €1511.2 million (2022) [1]
Owner
Number of employees
4996 (FTE, 2022) [1]
Website www.softwareag.com

Software AG is a German multinational software corporation that develops enterprise software for business process management, integration, and big data analytics. Founded in 1969, the company is headquartered in Darmstadt, Germany, and has offices worldwide.

Contents

With over 10,000 enterprise customers in over 70 countries, it is the second largest software vendor in Germany, and the seventh largest in Europe. [2] Software AG is traded on the Frankfurt Stock Exchange under the symbol “SOW” and part of the technology index TecDAX. [3]

In 2023, Silver Lake and Bain Capital made separate offers to buy the German company. In June, Software AG had most of its controlling interest acquired by Silver Lake, in a deal valued at 2.4 billion euros. [4] [5]

History

The company was founded in 1969 by six young employees at the consulting firm AIV (Institut für Angewandte Informationsverarbeitung). One of the founders was the mathematician Peter Schnell, who later became chairman of the board for many years.

ADABAS was launched in 1971 as a high-performance transactional database management system. In 1979, Natural, a 4GL application development English-like language, that was mainly developed by Peter Pagé, was launched. The company continued to open offices and subsidiaries in North America (1971), Japan (1974), UK (1977), France (1983), Spain (1984), Switzerland, Austria, Belgium, and Saudi Arabia (1985).

By 1987, Software AG had around 500 employees, 12 subsidiaries in Europe and offices in more than 50 countries. In 1999, Software AG was listed on Frankfurt Stock Exchange and soon after the company released Tamino Information Server and Tamino XML Server. [3]

In January 2005, Software AG acquired Sabratec Ltd, a privately held legacy integration vendor headquartered in Israel. [6] This was followed by the acquisition of its Israeli distributor SPL Software in March 2007 [7] and the application modernization business of another Israeli company, Jacada in December 2007, [8] which formed the basis for its research and development center in Israel.

The company launched Centrasite SOA Governance platform in 2006 and with the $546M acquisition of U.S. rival webMethods in 2007 Software AG became active in the enterprise service bus, business process management and service-oriented architecture (SOA) product space. [9]

In July 2009, it announced a takeover offer for the Germany-based company IDS Scheer AG. Since February 2010, IDS Scheer is part of the Software AG Group. [10] In October 2010, the company acquired New Jersey based Data Foundations, a leading master data management provider. [11]

In May 2011, Software AG acquired Terracotta, Inc. and Metismo Ltd. Terracotta Inc is in the field of in-memory technology for high-performance applications and cloud services - especially the middleware platform WebMethods should benefit from this acquisition.[ promotion? ] [12]

In April 2012, Software AG (SAG) announced buying the British technology provider my-Channels. With it, Software AG gained in-house access to universal messaging technology that allowed the company to transfer their data streams quickly and safely to the cloud and mobile applications. [13]

In March 2013, SAG invested in Berlin-based company metaquark, which is specialized in mobile software - the aim is to jointly develop the webMethods Mobile Suite. [14] In April, Software AG bought the US cloud platform provider LongJump, which offers modules and templates for building and running business applications in the public or private cloud settings. [15]

On June 13, 2013, it acquired alfabet AG, a software provider of enterprise architecture and IT portfolio management. [16] Then SAG announced purchased the Apama Complex Event Processing platform of Progress Software; the platform provides an environment for the design and operation of CEP applications providing tools and graphical analysis and test capabilities for analysts, developers and administrators. [17]

In August 2013, Software AG acquired JackBe to serve as the foundation for its Intelligent Business Operations Platform, which provides analytics and decision management for real-time applications. [18] In December, Software AG invested in big data analytics company Datameer, [19] [20] which offers self-service Big Data Analytics and "to follow cutting edge technology trends". [21]

On March 27, 2017 SAG announced the acquisition of Cumulocity GmbH, based in Düsseldorf, Germany. [22] On June 12, 2018 Software AG acquired the Belgian self-service analytics company, TrendMiner NV., a specialist in virtual data analysis for the manufacturing and process industry. [23]

In April 2023, private equity firm Silver Lake agreed to buy the company for €2.2 billion (US$2.4 billion). [24] Silver Lake was outbid by Bain Capital in a non-binding counteroffer through its portfolio company Rocket Software, but Software AG's board and management supported the original offer citing its higher likelihood to go through and since it would remain an independent company. [25] [26] In June 2023, Silver Lake secured 63% of Software AG. [27]

Corruption allegations

In July 2017 allegations emerged in South Africa that Software AG made "kickback" payments by entering into questionable commission agreements with a Gupta-controlled company in the hope of securing lucrative state contracts. [28] "Software AG [launched] an internal investigation after a media report alleged it had paid kickbacks as part of a wide-ranging South African scandal..." [29]

Acquisitions

Company acquiredCountryDateBusinessReference
Built.io Flag of the United States.svg USANovember 2018IoT & Cloud Integration [30]
TrendMiner Flag of Belgium (civil).svg BelgiumJune 2018Data Analytics & Visualization [31]
Cumulocity Flag of Germany.svg GermanyMarch 2017IoT & Cloud Integration [32]
Zementis Flag of the United States.svg USADecember 2017Predictive Analytics & Big Data [33]
CONNX Solution Flag of the United States.svg USAAugust 2016Technology Provider [34]
alfabet Flag of Germany.svg GermanyJune 2013Enterprise Software[ citation needed ]
Apama Flag of the United Kingdom.svg UKJune 2013Software Product [35]
LongJump Flag of the United States.svg USAApril 2013CRM Software [36]
Metaquark Flag of the United States.svg USAMay 2014Mobile Software [14]
JackBe Flag of the United States.svg USAAugust 2014Artificial Intelligence [37]
my-Channels Flag of the United Kingdom.svg UKApril 2012Messaging Platform Software [38]
Terracotta, Inc Flag of the United States.svg USAMay 2011Computer Software [39]
Metismo Flag of the United Kingdom.svg UKMay 2011Mobile Middleware [40]
Data Foundations Flag of the United States.svg USAOctober 2010Enterprise Software[ citation needed ]
RTM Real Time Monitoring Flag of Germany.svg GermanyApril 2010Technology Provider[ citation needed ]
Teconomic Flag of Switzerland (Pantone).svg SwitzerlandJuly 2009Fintech [41]
itCampus Flag of Germany.svg GermanyOctober 2018IT Software[ citation needed ]
IDS Scheer Flag of Germany.svg GermanyJuly 2009IT Software and ERP Consulting [42]
Jacada Flag of the United States.svg USADecember 2007IT Software [43]
webMethods Flag of the United States.svg USAApril 2007ecommerce Software [44]
SPL Software Flag of Israel.svg IsraelMarch 2007System Integration[ citation needed ]
StreamSets, Inc Flag of the United States.svg USAFebruary 2022Data Engineering [45]

Products

Software AG markets software products in technologies like DBMS, application modernization, SOA, BPMS and ESB. [46] Below are a few of their products on the market.

Gartner Rankings

Software AG has been consistently ranked as a leader in Gartner's Magic Quadrant reports for enterprise integration platform as a service (iPaaS), enterprise architecture tools, and application integration middleware. In the 2021 Gartner Magic Quadrant for Enterprise Integration Platform as a Service, it was ranked as a leader for the fifth consecutive time.

In the 2021 Gartner Magic Quadrant for Enterprise Architecture Tools, SAG was also ranked as a leader for the fifth consecutive time. Additionally, in the 2021 Gartner Magic Quadrant for Application Integration Middleware, the company was ranked as a leader for the 15th consecutive time. [48]

Communities

Software AG uses two main customer communities: the ARIS Community, [49] for the user group around ARIS, and the TECHcommunity, [50] for collaboration around Cumulocity IoT, Adabas & Natural, webMethods, Apama, Alfabet, TrendMiner. In August 2021 Software AG introduced its virtual platform Software AG Groups where developers and customers can connect, collaborate, learn and share ideas.

The Software AG University Relations Program organizes events and features free education packages that are self-explanatory, easy to use and made for remote learning. In an effort to build an academic user group, students gain free access to software, video tutorials and online training with the option to get certified upon completion. [51]

In 2022, Software AG partnered with the all electric ERA Championship as a title sponsor, bringing their technological expertise to the series, implementing solutions regarding data and utilizing the series as a platform for the company's ESG initiatives. [52]

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References

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  2. ↑ "European software vendors ranking 2014". TRUFFLE CAPITAL. Retrieved 22 May 2015.
  3. 1 2 "Software AG O.N. (Frankfurt) Stock Price - SOW". ADVFN. 2018. Retrieved May 7, 2018.
  4. ↑ "Silver Lake acquires majority stake in Software AG". Private Equity Eire. Retrieved 2023-07-28.
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  7. ↑ "Software AG: US will be our top market in future". Jerusalem Post. 2012-10-25.
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  13. ↑ "my-Channels: Software AG übernimmt britischen Messaging-Spezialisten". computerwoche.de.
  14. 1 2 Schindler, Martin (27 March 2013). "Software AG investiert in mobiles Startup" [Software AG invests in mobile startup] (in German). silicon.de.
  15. ↑ Developer, heise (26 April 2013). "Software AG kauft PaaS-Firma LongJump". heise.de.
  16. ↑ "Software AG übernimmt alfabet". crn.de.
  17. ↑ Developer, heise (17 June 2013). "Software AG kauft Apama".
  18. ↑ "Software AG's Acquisition of JackBe Recognized as Strategic M&A Deal of the Year". Reuters. April 30, 2014. Archived from the original on May 17, 2014.
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  20. ↑ "Datameer Raises $19M As Market For Hadoop And Big Data Analytics Hits An Inflection Point".
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  22. ↑ "Software AG Press Releases". www.softwareag.com. Retrieved 2018-03-19.
  23. ↑ "Software AG acquires Trendminer to expand IoT portfolio through time-series data used in AI algorithms". Software AG. 2018-06-12. Retrieved 2019-03-21.
  24. ↑ Babu, Juby (April 21, 2023). "Silver Lake to buy Germany's Software AG in $2.42 billion deal". Reuters.
  25. ↑ Chambers, Madeline (May 17, 2023). "Silver Lake submits offer document for Software AG". Reuters.
  26. ↑ Malsch, Laura (May 17, 2023). "Investors Blast Software AG for Failing to Consider Rival Bids". Bloomberg News.
  27. ↑ "Silver Lake secures 63% stake in Software AG after months-long pursuit". Reuters. 2023-06-29. Retrieved 2023-06-30.
  28. ↑ "#GuptaLeaks: Another software giant implicated in 'kickback' payments". News24. 2017. Retrieved May 7, 2018.
  29. ↑ "Germany's Software AG starts probe into South Africa kickback reports". Reuters. 2017-07-25. Retrieved 2019-03-21.
  30. ↑ "Acquisitions by Software AG". tracxn.com. Retrieved 2021-01-17.
  31. ↑ TrendMiner (2018-06-12). "Software AG acquires Technology Scale-up TrendMiner for analysis and visualization of time series data". GlobeNewswire News Room (Press release). Retrieved 2021-01-17.
  32. ↑ "Business Wire". www.businesswire.com. 27 March 2017. Retrieved 2021-01-17.
  33. ↑ "Business Wire". www.businesswire.com. 2 December 2016. Retrieved 2021-01-17.
  34. ↑ "Software AG Acquires CONNX Solutions | Mergr". mergr.com. Retrieved 2021-01-17.
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  38. ↑ "Software AG Acquires my-Channels for Universal Messaging Technology". SD Times. 2012-04-16. Retrieved 2021-01-17.
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  40. ↑ "Software AG Buys Metismo To Expand Enterprise Mobile Offerings". TechCrunch. Retrieved 2021-01-17.
  41. ↑ "Software AG acquires Swiss Swift specialist Teconomic". Finextra Research. 2009-07-08. Retrieved 2021-01-17.
  42. ↑ Hetzner, Christiaan (2009-07-13). "Software AG to buy IDS Scheer". Reuters.
  43. ↑ "Software AG Buys Parts Of Jacada For $26 Million". InformationWeek. Retrieved 2021-01-17.
  44. ↑ "Software AG Acquires webMethods". InfoQ. Retrieved 2021-01-17.
  45. ↑ "Software AG Acquires Streamsets". 8 March 2022.
  46. ↑ "Webmethods certified ESB developer" (PDF). softwareag.com.
  47. ↑ "Tamino 10.1". IBM.
  48. ↑ "Magic Quadrant for Global Industrial IoT Platforms".
  49. ↑ "University Relations". ARIS BPM Community. 22 December 2011. Retrieved 2019-03-21.
  50. ↑ "Software AG Tech Community". Software AG TECHcommunity. Retrieved 2021-11-15.
  51. ↑ "Software University Development, Offer Management Software". Software AG. Retrieved 2019-03-21.
  52. ↑ "SOFTWARE AG". ERA Championship. Retrieved 2023-11-17.
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