By Balasubramanyam Seshan: Subscribe to Balasubramanyam's RSS feed
July 28, 2010 7:51 AM EDT
US computer software company Adobe Systems Inc. agreed to buy Switzerland’s Day Software Holding AG, a provider of Web 2.0 content applications and content infrastructure, for 139 Swiss francs per share in cash or about 255 million Swiss francs (about $240 million) through public tender offer.
The San Jose, California-based Adobe said the acquisition will strengthen its enterprise software services with web content management (WCM), digital asset management and social collaboration offerings.
“With the addition of Day to our enterprise portfolio, we will be able to enhance the value of our offering and deliver on our vision of the web as the hub of customer interaction,” said Rob Tarkoff, senior vice president and general manager, Digital Enterprise Solutions, Adobe.
Adobe expects the acquisition to have no material impact on the company’s non-GAAP earnings for fiscal 2010, but to add to its non-GAAP earnings for fiscal 2011. The transaction is expected to close in the fourth quarter of Adobe’s fiscal 2010.
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The proposed offer represents a premium of 59 percent over Day Software’s volume-weighted average share price for the last 60 trading days.
Adobe said the acquisition represents a significant market opportunity for the company to help organizations transform themselves by enabling them to create, manage, distribute and monetize content while optimizing the web experience for their customers.
As part of the expected integration of the two companies, Day Software will operate as a product line within Adobe's Digital Enterprise Solutions Business Unit.
Day Software reported earnings for its first half of 2010 of 3.7 million Swiss francs for a total profit margin of 15 percent. Total revenues rose 47 percent to 25.1 million Swiss francs. Total cash at the end of first half of 2010 were 27.2 million Swiss francs, up 49 percent over last year.
Adobe’s adjusted earnings during latest second quarter were $234.2 million or 44 cents a share, compared to $185.0 million or 35 cents a share in last year. Total revenue rose 34 percent to $943.04 million.
Adobe shares closed Tuesday up 0.17 percent at $29.22 on the Nasdaq.
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