Database vendor Informix last week said it will acquire data warehouse vendor Red Brick Systems in a stock swap valued at $US35 million.
Informix said it will sell and support Red Brick's entire product portfolio, and integrate it into the Informix Decision Frontier product line following the purchase.
In a joint statement the companies said the deal combines two companies that share a common corporate vision of providing state-of-the-art decision support and data warehouse systems to customers.
When the purchase is complete, Red Brick research and development, marketing and data warehouse consulting organisations will be folded into the Informix Data Warehousing Division, managed by Leonard Palomino, vice president and general manager.
Red Brick's customer support organisation, administrative and sales organisations will be integrated with Informix's respective divisions.
Under the terms of the agreement, each share of Red Brick common stock will be exchanged for a 0.6 share of Informix common stock. The transaction will be accounted for as a purchase, which is expected to close before the end of the year. However, the deal still requires approval from regulatory agencies and Red Brick stockholders and the completion of an independent audit of Red Brick's financial results for the first three quarters of 1998, the companies said.