Software AG

euro adhoc: Software AG
Mergers - Acquisitions - Takeovers / Software AG to acquire integration technology company Sabratec Ltd.

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07.01.2005

Software AG plans to acquire 100 percent of the shares of privately owned Sabratec Ltd., Tel Aviv, a vendor of integration software. A share purchase agreement has been reached with the majority of the shareholders today, following a letter of intend dated November 30, 2004 and subsequent due diligence. The Supervisory Board of Software AG agreed to the planned deal on December 8, 2004. The purchase price of seven million US Dollars will be paid in cash after closing. In addition the former shareholders of Sabratec will receive a future revenue based earn-out over the next three years up to a total amount of four million US Dollars.    

Sabratec is the first example of Software AG’s announced acquisition strategy, which is focused on product components to enhance core competencies and to position the company as a strategic partner to existing and new customers. Software AG will assume responsibility of 16 employees, mostly software developers, who will continue to work in Tel Aviv.

Software AG’s primary interest is ApplinX, the main product developed by Sabratec. This integration software expands Software AG’s legacy modernization product portfolio. It enables the company to fully address the modernization and integration requirements of legacy users. Most important is the opportunity to win new customers in the large COBOL community.

Sabratec currently serves approximately 200 customers worldwide including the USA, Europe, South America and Australia.  Founded in 1997 in Israel, it has distribution partners in 14 countries around the world and a subsidiary in New York. The acquisition showed growing product revenue (circa 3 million US dollars) and profit in 2004.  The Board of Software AG expects to accelerate this trend and thus the acquisition to be accretive in terms of revenue and net profit from the first year.  

Software AG's executive board will hold an analyst conference call today at 2:00 p.m. (CET). To participate, please call: +49 (0) 69 50957 2060. A ReBroadcast will be available until January 21, 2005 under the following number: +49 (0) 69 50957 9999 (Access-Code: 275384).

You can find further information in our additional press release, published on www.softwareag.com.

Note: The attached German language version is legally binding.

end of announcement                                euro adhoc 07.01.2005 10:02:37
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Further inquiry note: Investor Relations: Otmar F. Winzig, Vice President Investor Relations Tel.: +49 (0)6151 92 1669 E-Mail: otmar.winzig@softwareag.com

Presse: Susanne Eyrich, Vice President Corporate Communications Tel.: +49 (0)6151 92 1511 E-Mail: susanne.eyrich@softwareag.com

Branche: Software
ISIN:      DE0003304002
WKN:        330400
Index:    Midcap Market Index, TecDAX, Prime Standard, CDAX, HDAX, Prime All Share, Technologie All Share
Börsen:  Berliner Wertpapierbörse / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Niedersächsische Börse zu Hannover / free trade
              Bayerische Börse / free trade
              Bremer Wertpapierbörse (BWB) / free trade
              Frankfurter Wertpapierbörse / official dealing



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