Software AG to acquire Terracotta Inc

This acquisition will allow Software AG to provide innovative cloud solutions and dramatically increase the performance and scalability of its Business Process Excellence platform. Terracotta’s product portfolio provides leading edge in-memory technology and is the de facto caching standard for enterprise Java. Terracotta’s in-memory processing will provide the foundation technology for Software AG’s cloud offerings. With in-memory data access up to 1,000 times faster than database access, this will enable Software AG to increase revenue with existing and new customers through significantly larger business process excellence projects encompassing complex event processing, mobile technology, cloud distribution and virtualization. The acquisition also extends Software AG’s business model options by adding a large and thriving open source community.

Founded in 2003, Terracotta is a privately held company with 55 employees in development centers in San Francisco and New Delhi. With more than 500,000 deployments of the open source technology, including the majority of the Fortune 2000, Terracotta is behind some of the most widely-used software for application scalability, availability and performance.

This transaction will strengthen Software AG’s market leadership in Business Process Excellence. Terracotta will be the in-memory technology in the Software AG product stack, supporting a highly scalable product portfolio and enabling a much broader usage of Software AG’s products in the most extreme application conditions. Customers will now have the most advanced technology solution available for analyzing vast amounts of data more efficiently and cost-effectively. This will provide vital real-time business information and insights and greater control over business processes and operations.

“The integration of Terracotta’s technology with our product portfolio is a major step in ensuring that our customers can fully benefit from the convergence of cloud computing, the mobile web, complex event processing and real-time, multi-party collaboration through unprecedented levels of performance and scalability,” said Software AG CTO Wolfram Jost. “Software AG is also committed to fully supporting Terracotta’s open source Communities in further developing this next generation in-memory technology.”

The ability to scale the processing of massive loads of data across flexible, modular, geographically distributed architectures will also drive cloud adoption and transform Software AG into a full Platform-as-a-Service (PaaS) provider in the mid-term. Terracotta’s technology can store up to a terabyte of data in-memory. This will provide customers with an unprecedented boost to application and system performance and scalability.

“The combination of Software AG and Terracotta will provide enormous value to customers of both companies through a comprehensive software stack that supports the level of performance and scale required in private and public cloud infrastructures,” said Amit Pandey, CEO of Terracotta. “Both Terracotta and Software AG are committed to further investment in our technologies and preserving the vibrant open source communities of Ehcache and Quartz.”

Software AG expects to release the first combined products in the fourth quarter, 2011. The company’s cloud based Platform-as-a-Service (PaaS) roll-out will be in 2012.
The transaction has been approved by the Supervisory Board of Software AG.  The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in June, 2011.

• Terracotta provides leading edge in-memory technology for high performance applications and cloud services
• Terracotta owns the de facto caching standard for enterprise Java used by over 1 million developers worldwide
• Terracotta’s portfolio will form the foundation of Software AG’s in-memory and cloud offerings
• The combined portfolio will increase revenue with existing customers and expand opportunities with new enterprise customers
• In addition, Software AG gains access to Terracotta’s large open source community