CodeGear, the development tools unit of Borland Software, has been acquired by Embarcadero Technologies.
Embarcadero said the deal combines the market leaders in development tools and database tools. The $US30 million transaction is expected to close in 30 to 60 days.
"CodeGear is a recognized leader with a loyal developer community and established global channels," said Wayne Williams, CEO of Embarcadero Technologies, in a statement released by the company. "By incorporating its strong product portfolio, Embarcadero will be positioned to expand into new markets and develop cutting-edge products that are a quantum leap for the industry. The combination of our companies will unlock enormous potential for our customers and partners."
The acquisition is expected to make Embarcadero the world's largest independent software provider, Embarcadero said.
"Today's announcement is great news for our CodeGear customers, employees, partners, and the community at large," said Jim Douglas, CEO of CodeGear, also in a prepared statement. "This will give us the resources to be even more aggressive and focused on our core products and markets."
CodeGear offers Java and Windows developer tools, such as the JBuilder Java tool and Delphi for Windows. The company also has entered the Ruby on Rails development tools space.
CodeGear was spun out of Borland in 2006, after Borland deciding to focus on the application lifecycle management space but could not find a buyer for its tools group, which was then made into a wholly owned Borland subsidiary. The IDE market that had been Borland's forte had begun to suffer from commoditization.
The new entity will operate as Embarcadero Technologies, although it has not been established yet whether the CodeGear name goes away.
In addition to the $23 million purchase price, Borland will retain CodeGear accounts receivables estimated to have an approximate value of an additional $7 million.