Friday, September 12, 2008

Progress Software completes $162M IONA buyout

By Mass High Tech Staff

Progress Software Corp. reports that it has completed the acquisition of IONA Technologies PLC in a deal worth about $162 million that was initially announced in June.

Bedford-based Progress (Nasdaq: PRGS), a supplier of application infrastructure software, 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 $107 million net of cash and marketable securities reported on March 31, company officials said.

IONA has become an indirect division of Progress Software.
 
In connection with the acquisition, Progress expects to issue options to purchase an aggregate of 542,800 shares of Progress common stock to about 90 former IONA employees who have joined Progress. The grants will be made pursuant to Progress’ 2004 inducement stock plan and are subject to the approval of the compensation committee of Progress’ board of directors, 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.