Software AG to buy webMethods for $546 million

Software AG moves forward with effort to reinvent itself as an SOA company

Software AG has agreed to buy SOA vendor webMethods for $546 million in cash, the companies announced Thursday.

Long a specialist in XML (Extensible Markup Language) and the integration of legacy systems, Software AG is in the midst of an effort to reinvent itself as an SOA (Services Oriented Architecture) company. Last month announced plans to build an alliance of small European software vendors around that theme.

In addition to bolstering its SOA offerings, the acquisition of webMethods will give the Darmstadt, Germany, company a foothold in the U.S., and help achieve its goal of doubling its revenue to more than €1 billion ($1.3 billion). In North America, Software AG has less than half the number of clients that webMethods has, it said.

The supervisory boards of the two companies have approved the deal, for which they must still obtain approval from shareholders and regulators. Software AG expects to close the deal by the end of June.