Hyperion Buys Brio Software

It is the second merger in a week among business intelligence players.
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Merger mania in the software sector picked up momentum Wednesday with



announcement that it will buy rival

Brio Software


in the second acquisition by a business intelligence software vendor within a week.

Sunnyvale, Calif.-based Hyperion said it will pay Brio shareholders a combination of 0.109 shares of Hyperion common stock and 36 cents for each share of Brio common stock. Based on Tuesday's closing price, the purchase is valued at about $142 million. The deal, approved by both companies' boards, is expected to close in the fourth quarter.

Combined trailing 12-month revenue for both companies total $613 million, which will push Hyperion to the No. 2 position in the business intelligence market, displacing competitor



. On Friday, Cognos was pushed from top-selling vendor according to sales when

Business Objects


announced that it will

buy IPO-bound

Crystal Decisions

for $837 million in cash and stock.

Also Wednesday, Hyperion reported fiscal fourth-quarter results ahead of Wall Street expectations.

Hyperion said net income for the fourth quarter ended June 30 came to $9.2 million, or 25 cents a share, up from net income of $6.2 million, or 18 cents a share, in the year-earlier period. That beat by a penny the consensus estimate gathered by Thomson First Call.

Hyperion's total quarterly revenue increased 2% from a year ago to $138 million, also surpassing the consensus estimate of $134.7 million.

Shares of Hyperion closed up $1.50, or 5.3%, at $29.68 before declining in after-hours trading to $27.50. Brio shares rose almost 10% in after-hours trading to $3.29 after gaining 30 cents, or 11.1%, to close at $3.00.