Following on from my post of Business Intelligence Vendor consolidation, the price paid for these acquisitions and mergers has come under scrutiny. During Spring 2007, three takeovers of performance management competitors occurred almost simultaneously. The SAP takeover of Business Objects was announced on October 7, and IBM’s takeover of Cognos on November 12.Only Hyperion, Applix, Business Objects and Cognos were publicly traded companies, whose price could be regarded as set by the market, with Hyperion and Business Objects being category leaders and Applix one of the fastest growing BI vendors. Cognos’s market value was artificially boosted by the growing takeover frenzy that developed during 2007.
Cartesis was less dominant, except in France, and slower growing, while OutlookSoft was not dominant in any market, and was most threatened by Microsoft PerformancePoint. On this basis, Oracle, Business Objects and Cognos probably paid something close to the ‘right’ price for their respective acquisitions, while SAP almost certainly significantly overpaid for OutlookSoft (particularly given its subsequent takeover of Business Objects and hence Cartesis as well).
The table below details the cost of each business intelligence acquisition.
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