24 July 2003 Business performance management software supplier Hyperion has announced the acquisition of business intelligence software vendor Brio Software for $142 million.
The move comes less than a week after Business Objects announced the purchase of rival Crystal Decisions for $820 million, making it the largest player in the BI sector.
Hyperion said that the reason for buying Brio is to improve the query and reporting capabilities of its software and to extend its market presence in the business performance management software sector.
“With Brio, we will gain one of the most innovative and pioneering companies in business intelligence and our customers will gain integrated query, reporting and analysis tools that are renowned for their ease-of-use, quick deployment, scalability and remarkable power,” said Jeff Rodek, CEO of Hyperion.
For Brio, however, which competes heavily against Business Objects and Crystal Decisions, the deal was more a case of business prudence. The company has struggled for the last three years and reported a loss of $2.1 million in its most recent quarter on revenues down 7% to $24.8 million. It was likely to have found it increasingly difficult to compete against Business Objects.
Commenting on the acquisition, Brio CEO Craig Brennan said: “This combination creates the greatest on-going value for Brio customers, by ensuring continued enhancement, support and, ultimately, integration of Brio’s products into the industry’s leading business performance management platform.”
Under the terms of the deal, Brio shareholders will receive just over a tenth of a share of Hyperion stock plus 36.3 cents for each Brio share. The transaction, which has already been approved by the boards of both companies, is expected to be completed by the end of the year.