Progress Software Corporation (NASDAQ: PRGS) today announced that it has signed a definitive agreement to sell its Sonic, Savvion, Actional and DataXtend (DXSI) product lines to the investment arm of Trilogy Enterprises, one of the largest privately held enterprise software companies in the world. The terms of the transaction were not disclosed.
"We are pleased to announce these divestitures, which represent the continued execution of our strategic plan,” said Progress’ Executive Chairman, Phil Pead. “With a goal to increase growth, profitability and shareholder value, we will continue to concentrate on providing the most productive, cost-effective, on-premise, cloud- and mobile-enabled platforms for developing, deploying, and maintaining the world’s best business applications. The divestitures announced to date represent 80% of Progress’ non-Core revenue stream and have served to further enhance our management team’s focus on our current Core business. That said, we remain committed to the expeditious divestiture of the remaining non-core product lines."
The transaction is subject to customary closing conditions and is expected to be completed in November 2012. Upon completion, ObjectStore and Orbix, which includes the Artix and Orbacus products, will be the only product lines remaining to be divested. To date, Progress has completed its previously announced sale of FuseSource to Red Hat and expects the sale of its Shadow product line to Rocket Software to be completed shortly.
Taken together, the total sales price for all divested products and products under agreement to be divested to date is approximately $114 million. The combined fiscal 2012 year-to-date revenue of these products is $83 million, which represents approximately 80% of the total non-Core revenue stream.Pacific Crest Securities LLC is serving as Progress’ financial advisor with respect to the transaction and Wilmer Cutler Pickering Hale and Dorr LLP is serving as Progress’ legal counsel. About Trilogy Enterprises Trilogy Enterprises is one of the largest privately-held enterprise software companies in the world. With over 10,000 customers across 45 countries, Trilogy is focused on providing software and technology solutions that drive measurable business value for the world’s largest global companies. Trilogy combines a maniacal focus on customer success with world-class enterprise software development capability. For more information, visit http://www.trilogy.com. About Progress Software Corporation Progress Software Corporation (NASDAQ: PRGS) is a global software company that simplifies the development, deployment and management of business applications on-premise or on any Cloud, on any platform and on any device with minimal IT complexity and low total cost of ownership. Progress Software can be reached at www.progress.com or 1-781-280-4000. Actional, DataXtend, Fuse, Progress, Savvion, Shadow and Sonic are trademarks or registered trademarks of Progress Software Corporation or one of its subsidiaries or affiliates in the U.S. and other countries. Any other trademarks contained herein are the property of their respective owners.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV