Squeaky Clean Data Merits FirstLogic Buy
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Business intelligence software leader Business Objects agreed to buy Firstlogic, which sells data-quality management software and services, for $69 million in cash.
FirstLogic is a private company with 2005 revenues of $50 million and 6,000 customers worldwide.
The company's software and services assess data and clean it up so that it can be turned into accurate information. These tools can help companies meet federal compliance regulations for managing information.
Business Objects specializes in business intelligence software that helps corporations determine how their business operations are functioning and graphically renders the data.
The software can tell a business manager how his sales staff is performing, for example, among other key performance metrics.
The company also has some data-integration offerings, and FirstLogic will help the France-based company purify the data, making it more accurate and relevant, for customers.
Business Objects CEO John Schwarz said in a statement information management will play a vital role in the business-intelligence market because companies keep adding new data sources and need some way to extract important information from them in real time.
FirstLogic's Information Quality Suite and IQ8 technology, along with Business Objects' integration and performance management software, can help customers meet mounting data challenges and comply with guidelines like Sarbanes-Oxley and HIPAA.
The purchase is the second such data-quality bid within a month. In late January, Informatica agreed to acquire Dublin, Ireland-based Similarity for $55 million in cash.
IBM made the blockbuster buy in this space a year ago when it purchased Ascential Software for $1.1 billion.
IBM is using Ascential's software in its data-management unit to fashion a service-oriented architecture (SOA) portfolio for customers.
Since buying reporting powerhouse Crystal Decisions a couple of years ago, Business Objects has been acquiring companies to flesh out its software portfolio.
Last summer, the company acquired financial planning software maker SRC Software for $100 million in cash.