Software AG buys WebMethods

Software AG will acquire WebMethods Inc., a provider of business integration software, in an all-cash deal of about $546 million.

The purchase of the Fairfax, Va., company will considerably expand Software AG's customer base in North America, said Karl-Heinz Streibich, Software AG's chief executive officer.

It also provides the combined company with a wider range of software, ranging from Software AG's service-oriented architecture governance software to WebMethods' application integration and business process management software, he said.

"The product portfolio is very complementary, as is the geographic reach," Streibich said.

Although traditionally concentrating on the corporate market, WebMethods has made efforts to serve federal agencies in recent years. The Internal Revenue Service used the company's software for some of its modernization efforts. The Defense Department used WebMethods' software for its EMall electronic procurement system. The company's flagship integration suite WebMethods Fabric recently received Common Criteria security certification from the National Information Assurance Partnership, paving the way for its use on networks carrying sensitive data.

In addition to government agencies, the WebMethods purchase should provide Software AG with entry to more federal system integrators.

"[Our] relationship with system integrators will also be significantly enhanced," Streibich said. "WebMethods has a real large group of partners, and this will be a real enrichment for Software AG."

Software AG is based in Darmstadt, Germany. Its U.S. subsidiary is headquartered in Reston, Va.

Joab Jackson is chief technology editor of Government Computer News, an 1105 Government Information Group publication.