In a deal valued at more than $580 million, Software AG is acquiring data integration platform developer StreamSets.
Software AG, which develops digital business and application integration software, described the acquisition as the first of a larger merger and acquisition effort “designed to accelerate growth by opening up access to new parts of [the company’s] €61 billion total addressable market.”
The acquisition, which is subject to regulatory approvals, is expected to be completed in the first half of 2022. Software AG is funding the acquisition with cash and the company’s existing credit facilities.
“This acquisition is a major milestone for Software AG,” said Software AG Chief Executive Officer Sanjay Brahmawar. “We’re acquiring a fast-growing business in a cloud market growing 26 percent. It’s technology and team will further differentiate our hybrid integration offering for customers and fully complement our strategy to deliver sustainable, profitable growth.”
Based in Darmstadt, Germany, with U.S. headquarters in Reston, VA, Software AG provides integration platform-as-a-service (PaaS) software. Its product portfolio covers application integration, APIs, and microservices; IoT integration and analytics software; and IT and business transformation tools and services. It also markets its ADABAS database and Natural programming tools.
Under its multi-year Helix initiative, Software AG has been transforming itself and its strategic direction in order to achieve “sustainable, profitable growth” and reach €1 billion in annual revenue in 2023. The Helix initiative was launched in early 2019, about six months after Brahmawar took over as CEO in August 2018.
Founded in 2014, StreamSets is a developer of DataOps software, which are tools used to manage data pipelines and data integration tasks, including collecting, consolidating, and moving data across hybrid environments.
The StreamSets DataOps platform is complementary to Software AG’s digital business portfolio, which integrates transaction data flowing through hybrid application landscapes. Therefore, Software AG plans to capitalize on StreamSets’ software by offering it to the Software AG customer base, creating joint solutions – starting in the iPaaS space – using both companies’ product portfolios and leveraging Software AG’s operational scale to accelerate StreamSets’ growth.
“Our products are made for each other, and we see tremendous opportunity in the convergence of application integration and data integration to deliver smart applications,” StreamSets CEO Girish Pancha said. “I have been admiring Software AG’s transformation from afar, and together, I believe we will accelerate our growth trajectory by unlocking digital transformation for our customers.”
The acquisition of StreamSets also will provide Software AG with a much-desired entry into the cloud data integration portion of the wider data integration market, a segment in a market that is expected to reach $3.5 billion by 2025.
Brahmawar said the acquisition of San Francisco-based StreamSets will also help Software AG expand its presence in North America, as the companies both target the same enterprise customers and IT buyers.