The push toward a full suite of business intelligence (BI) products continued Wednesday with the pending acquisition of SRC Software by Business Objects SA.
Paris-based Business Objects said it will buy privately held SRC Software of Portland, Ore., in an all-cash deal for $100 million. The purchase gives Business Objects a financial planning and performance management product to go with its own query and reporting tools. The move further sets the BI vendor against competitors like Ottawa's Cognos Inc., which acquired Swedish performance management vendor Frango last summer, and Santa Clara, Calif.-based Hyperion Solutions Corp., which has been steadily building out its own performance management tools.
BI vendors have benefited greatly from financial compliance regulations like Sarbanes-Oxley, which has put pressure on firms to closely track their finances.
"Adding financial planning, budgeting and consolidations to our portfolio marks a logical step in our evolution," Bernard Liautaud, chairman and CEO of Business Objects, said in a statement. "Organizations are looking to the CFO [chief financial officer] for more than financial gate keeping and compliance. They want a strategic partner that can help them optimize business operations and plan for the future."
SRC brings with it more than 1,200 customers and with a strong focus on health care in the U.S. and vertical offerings in retail banking, insurance and hospitality. SRC's products are integrated with Business Objects XI platform.
The acquisition is expected to be completed in the third quarter of 2005.