Updated from 7:44 a.m. EDT
SAN FRANCISCO --
agreed to buy
for $17.87 a share, or $306 million, in cash.
Ottawa, Ontario-based Cognos said the deal will "further extend its position as a leading independent provider of financial performance management."
The deal offers shareholders of Westborough, Mass.-based Applix a 24% premium to Tuesday's closing price. Cognos expects to complete the acquisition in the fourth quarter.
"This acquisition is a terrific strategic fit for Cognos. Applix will broaden our solution offering and provide Cognos with an innovative, 64-bit, in-memory analytics capability," said Rob Ashe, Cognos CEO. "It will also bring into the company a very strong employee and customer base that has been committed to performance management through high-impact analytics. This is another major step forward for Cognos in delivering leading performance management solutions to finance and across operations."
"We believe that this combination represents a great opportunity for the entire Applix community," said David Mahoney, president and CEO at Applix. "Our customers, partners and employees will become an important part of Cognos, which will allow the company to further enhance its position as a leader in the analytics market. Our organizations are very complementary, and I feel that they will blend together to create a leader in the financial performance management market."
Applix shares jumped on the news. The stock was up $3.17, or 22%, to $17.54 in afternoon trading.
Cognos was down 58 cents, or 1.4%, to $40.50.
"We're getting 3,000 customers and a couple hundred people with expertise developing, selling, supporting and servicing solutions," said Michelle Mollot, vice president of market strategy.
Cognos has 25,000 customers worldwide, of which 3,500 use the company's financial performance management software, according to Mollot.
Applix's partner network is also focused on solutions for financial performance management. Applix's software is complementary to Cognos', with minimal overlap, Mollot said.
The future of Applix's headquarters and the role of its executives postacquisition has yet to be determined, she said. The company would not discuss the history of the deal at this time.
The deal follows acquisitions this year of comparable developers of financial analytics software.
bought Cartesis, and
acquired Hyperion in recent months.
Enterprise software giant
also competes with Cognos in the market for enterprise financial performance management products.