Database tools vendor Embarcadero Technologies has snapped up Borland Software's unwanted tools subsidiary CodeGear for $23m - $127m less than initially sought.
Embarcadero said the deal provides a "significantly larger footprint" to serve millions of software developers. The deal appears timed to capitalize on the growing appetite for databases that's being fueled by web-based development.
It's certainly a bargain for Embarcadero. Borland had been touting CodeGear since early 2006 for an original sum of $150m, according to sources close to Borland, as the company focused on life-cycle management rather than its award-winning tools such as JBuilder and Delphi C++ Builder.
CodeGear chief executive Jim Douglas said the deal would give CodeGear the resources to be "even more aggressive and focused on our core products and markets." The resources are timely. CodeGear recently pushed out JBuilder 2008, considered a little rough around the edges.
But the deal does not necessarily represent a carte blanche investment.
Embarcadero itself struggled against an array of massive competitors before finally being purchased and taken private in September 2006 under a $234m deal with Thoma Cressey Equity Partners. Then chief executive Stephen Wong accepted the Thoma Cressey offer following a review of "strategic options".®