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Darmstadt, Germany, 3/31/2014
Software AG (Frankfurt TecDAX: SOW) today announced that an agreement with the Scheer Group GmbH (Saarbrucken, Germany) has been reached concerning the sale of its SAP-service operations in Germany, Austria and Switzerland (DACH region). The parties have agreed to maintain confidentiality with regard to the details of the agreement and the purchase price. The transaction is subject to approval of the respective fair trade offices and other customary closing conditions, and is expected to close in the second quarter of 2014. The transaction includes all of Software AG’s SAP product-specific services in the region DACH bundled in its subsidiary IDS Scheer Consulting GmbH with some 500 employees and total revenue of some €64 million (FY 2013).
With this step, Software AG will conclude the consolidation and transformation of the (non-core) SAP consulting business after having divested the operations in North America and Eastern Europe in 2013. The SAP consulting business was part of IDS Scheer AG which Software AG acquired in 2009 with the main focus on ARIS, the world leading business process analysis product portfolio. Software AG has fully integrated and further developed the ARIS product family which has become a vital and driving part of its fast growing product line Business Process Excellence (BPE). This business line already provides 60 percent of Software AG’s product revenue and has showed significantly stronger growth than the market and its peers.
Software AG and the Scheer Group have been partners in the German Software Cluster for more than five years and intend to extend their cooperation based on ARIS technology. ARIS is rated as the leading software for design and analysis of digital business processes and as of this year ARIS is also available in the cloud.
The transaction is expected to have a neutral to slightly positive effect on stated EBIT (IFRS) for FY 2014 and will reduce the revenue and business line contribution of the consulting division. The company now expects for FY 2014 additional improvements of group profit margin and to increase operating result (non-IFRS) for FY 2014 by two to seven percent over the previous year.
The financial results for Q1 2014 (IFRS, preliminary) will be released on May 2, 2014.
About Software AG
Software AG (Frankfurt TecDAX: SOW) helps organizations achieve their business objectives faster. The company's big data, integration and business process technologies enable customers to drive operational efficiency, modernize their systems and optimize processes for smarter decisions and better service. Building on over 40 years of customer-centric innovation, the company is ranked as a "leader" in fourteen market categories, fueled by core product families Adabas-Natural, ARIS, Alfabet, Apama, Terracotta and webMethods. Software AG has more than 5,200 employees in 70 countries and had revenues of around €973 million (IFRS, unaudited) in 2013.
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