Wednesday, June 25, 2008

Progress pays $162M for Ireland’s IONA

By Mass High Tech Staff

Progress Software Corp. and IONA Technologies PLC report that the two companies have reached an agreement for Progress Software to acquire IONA in a deal worth about $162 million.

Bedford-based Progress (Nasdaq: PRGS), a supplier of application infrastructure software, has agreed to pay $4.05 per share for Ireland-based IONA, (Nasdaq: IONA), a supplier of software integration technology. The acquisition is valued at about $106 million net of cash and marketable securities reported on March 31, company officials said.

Following the transaction, which is scheduled to be completed in September, IONA would become an indirect division of Progress Software. The IONA Technologies board of directors has unanimously approved the transaction, officials said.

IONA, which has its world headquarters in Dublin and its U.S. headquarters in Waltham, employs 335 workers. During 2007, the company posted a $740,000 net loss on $77.7 million in revenue.

Progress Software, founded in 1981, employs about 1,600 workers. Last year, the company posted a $42.2 million net income on $493.5 million in revenue.