August 10th, 2009
Where's my wedding invite? SAP and Tibco?
Are SAP and Tibco getting hitched?
Reuters today indicated that SAP may be getting serious about buying Tibco.
This isn’t the first time this potential corporate marriage has been rumored. Check out this 2007 post from fellow blogger Dennis Howlett when the speculation was running high then.
Will this time be different? It could be but first let’s understand how some corporate M&A types think/operate. Corporate M&A deal makers often explore whether potential takeover candidates possess the appropriate deal synergies to pursue the matter in the first place. If the deal fits strategically, then a set of pricing calculations are made, the lawyers are hired and the bankers get things rolling. However, few M&A types will make a run at a company more than once. ONCE A POTENTIAL ACQUISITION IS PASSED ON, IT RARELY IS CONSIDERED AGAIN.
Time and changing business situations/needs can change things, though. Since 2007, Oracle has made several acquisitions and has a big one in Sun still out there. Will SAP feel the need to bolster its middleware to better confront Oracle in the marketplace? Does the acquisition of Tibco open up more cross-selling opportunities for SAP today? Does SAP need to do this deal to prevent Tibco falling into the hands of a competitor? Will this deal be accretive in short order? There are many considerations to review in a new run at Tibco and I’m not sold yet that it will/should happen.
With merger rumors, remember the old investment banker advice “Buy on the rumor, sell on the deal”.
This blog explores the intersection set between services and technology. If it impacts either space, it will be covered here. Brian Sommer is a former Accenture partner. He did an 18-year tour of duty there and ran three small practice units (Finance Center of Excellence, HR Center of Excellence and Software Intelligence). He’s sold service projects in almost every continent and remains just as current on both services and technology today as ever before. Brian is currently CEO of TechVentive, a strategy consultancy servicing technology providers, and a research analyst with Vital Analysis. See his full profile and disclosure of his industry affiliations.
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