Borland Software has continued its buying spree with an announcement that it has signed an agreement to acquire TogetherSoft, a maker of software design and analysis technology. Borland will pay $US185 million in cash and stock for the privately held company.
The acquisition of TogetherSoft will add that company's ControlCenter product to the Borland product line. ControlCenter is a software development collaboration and modelling tool that enables software developers to coordinate their development efforts.
The company also comes with a customer base that includes companies such as Charles Schwab & Co, The Home Depot, Cisco Systems and Sprint. TogetherSoft has a worldwide sales and R&D organisation, with development centres in Russia and the Czech Republic in addition to its operations in the US, according to Borland.
Borland announced that it would continue investment in both its JBuilder and TogetherSoft's ControlCenter products while also looking for ways to combine the features of those products into hybrid development suites.
The deal, which has yet to be approved by TogetherSoft's shareholders, is expected to increase Borland's revenue by between $US60 million and $70 million in calendar 2003, according to Borland.
This is Borland's second purchase of the month. On October 9, Borland announced that it had agreed to purchase application development software maker Starbase for $US24 million in cash. Starbase's products allow developers to manage software application design, testing, and deployment.
Borland's other purchases this year include Redline Software in January and Highlander Engineering in May.
Assuming that both the Starbase and TogetherSoft transactions are completed in 2002, Borland expects 2003 revenue of between $US355 million and $370 million.