REDWOOD CITY, Calif., Feb. 12, 2009 (GLOBE NEWSWIRE) -- Informatica Corporation (Nasdaq:INFA), the leading independent provider of data integration software, today announced that it has signed a definitive agreement to acquire Applimation, the market leader in application Information Lifecycle Management (ILM). The acquisition is expected to close within a matter of days. Applimation delivers a product portfolio for customers to manage various phases of their application data lifecycle, from testing to archiving. Application ILM reduces total-cost-of-ownership and increases return-on-investment associated with enterprise business applications, such as ERP, CRM, HR and SCM.
A leading industry analyst group estimates that more than 80 percent of data in these enterprise applications is "inactive," yet such data consumes expensive storage and database capacity. In addition, more than 40 percent of data is estimated to be confidential. Effective lifecycle management of application data lowers storage and database costs, improves performance and ensures confidentiality.
"Our acquisition of Applimation expands our addressable market to encompass an adjacent growth category -- application Information Lifecycle Management," said Sohaib Abbasi, chairman and chief executive officer, Informatica. "The combination of Informatica and Applimation further advances our technology leadership in data integration. Together, we will offer customers a platform to access, integrate and trust all their active and archived data, while reducing total-cost-of-ownership."
Deployment and on-going administration of enterprise business applications is a time-consuming and expensive process. Successful application deployment dictates testing using multiple, representative "real-world" test data sets, while preserving the confidentiality of any sensitive data. On-going application administration demands cost-effectively managing the ever-increasing data volumes while ensuring acceptable application performance for business users. In addition, new and existing regulatory regimes mandate long-term retention and accessibility of data. To address these challenges, Informatica estimates that organizations spend more than $400 million annually on application ILM solutions. And, industry analysts estimate that this category is growing by more than 30 percent.
Applimation offers a broad product portfolio for customers to cost-effectively manage the data lifecycle. Applimation incorporates the broadest and richest application-aware metadata for packaged applications from Oracle and SAP. This out-of-the-box support covers more than a hundred modules of Oracle, PeopleSoft and Siebel applications. It also covers SAP modules including ERP, HR, CRM, SRM, SCM and APO. Applimation even supports custom applications developed using most major RDBMS and legacy mainframe systems. Applimation has a track record of delivering proven and differentiated value to customers and partners: lower storage and database costs, better application performance and higher data security.
"In this economy, customers understand, now more than ever, the value of taking a holistic approach to application ILM," said Bob Markese, chief executive officer, Applimation. "By integrating Applimation with the Informatica platform, customers now have a single product portfolio to manage the various phases of their application data lifecycle from data migration, test data management, archiving and application retirement."
More than 290 customers globally including, Aetna Life Insurance Company, AT&T Mobility, Blue Cross and Blue Shield of Florida, Getty Images, The Hudson's Bay Company, IKON Office Solutions and Starbucks rely on Applimation solutions.
Informatica will acquire all the capital stock of Applimation in a cash transaction valued at approximately $40 million. The acquisition is subject to customary closing conditions.
Informatica will be discussing the acquisition of Applimation on a conference call beginning today at 5:00 pm ET. A live webcast of the conference call will be available at http://www.informatica.com/investor. The replay details will also be available from this link. To join via telephone, dial: +1-866-700-6979 (U.S.), +1-617-213-8836 (international), 79677067 passcode.
About Informatica
Informatica Corporation (Nasdaq:INFA) is the leading independent provider of enterprise data integration software and services. With Informatica, companies can gain greater business value by integrating all their information assets from across the enterprise. More than 3,450 companies worldwide rely on Informatica to reduce the cost and expedite the time to address data integration needs of varying complexity and scale. For more information, call +1 650 385 5000 (+1 800 970 1179 in the U.S.), or visit www.informatica.com.
Forward Looking Statement
This press release contains forward-looking statements regarding the expected timing of the closing of the acquisition of Applimation, the expected benefits to our customers and products and our ability to integrate the technology we acquire into our data integration product suite according to the timeline described above. Such statements involve risks and uncertainties, and actual results may differ materially from the results described in this press release. The potential risks and uncertainties that could cause actual results to differ include, among others, risks related to our ability to (1) successfully integrate Applimation and its employees into Informatica and achieve expected synergies, (2) compete successfully in this highly competitive and rapidly changing marketplace, (3) retain key employees and (4) other factors affecting the operation of the respective businesses, as well as those risks and uncertainties included under the caption "Risk Factors" in Informatica's report on Form 10-K for the year ended December 31, 2007 and Informatica's report on Form 10-Q for the quarter ended September 30, 2008, which are on file with the SEC and is available on the company's investor relations website at www.informatica.com. All information provided in this release is as of February 12, 2009, and Informatica undertakes no duty to update this information.
Note: Informatica is a registered trademark of Informatica Corporation in the United States and in jurisdictions throughout the world. All other company and product names may be trade names or trademarks of their respective owners.