Software AG Acquires StreamSets to Further Accelerate Rapid Growth in Hybrid Integration
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StreamSets is a fast-growing, enterprise-grade provider of data integration for modern analytics with a four-year revenue CAGR of more than70% . -
Acquisition enables
Software AG to address more of its€61 billion total addressable market by entering the cloud data integration market segment, growing26% annually. - StreamSets’ technology fits perfectly with Group’s existing hybrid integration portfolio, as does its go-to-market with a shared focus on enterprise customers and IT buying personas.
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Software AG will drive value through cross-selling; developing joint iPaaS offerings; and enablingStreamSets to drive its rapid stand-alone growth more profitably. - The Group’s organic business 2022 guidance and 2023 ambitions remain unchanged.
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StreamSets to continue to deliver high-double digit revenue growth through the medium term, and, despite increasing scale, become non-IFRS EBITA margin accretive over the same period.
StreamSets’ enterprise-grade data integration platform enables customers to move data seamlessly and securely to and from any part of their digital backbone, which is built by Software AG’s Digital Business portfolio across hybrid and multi-cloud environments. This combination enables organizations to better unlock and capture value from data as it moves between on-premises applications, data streams, SaaS applications, legacy data stores and cloud data platforms like Amazon RedShift,
Sanjay Brahmawar,
Strategic rationale
The acquisition is the first in Software AG’s M&A strategy which is designed to accelerate growth by opening up access to new parts of its
Where Software AG’s existing Digital Business portfolio connects a hybrid application landscape and integrates the transaction data within it, StreamSets’ technology collects, consolidates and moves data from across this landscape as well as a broader range of datasets including edge and process data. This requires smart data pipelines that understand the structure and meaning of the data passing through them and have the ability to transport the data to a set of hybrid destinations, such as modern cloud data warehouses, data lakes, messaging systems and event hubs. In this way, the StreamSets DataOps Platform delivers modern data pipeline technology to solve a crucial part of the hybrid integration challenge for enterprise customers.
Alongside this strong technology fit, StreamSets’ go-to-market approach is also highly complementary to Software AG’s. Both groups target the same enterprise customer segment and buying personas that reside in the same IT purchasing area. The companies also have highly complementary cultures, combining ‘agile start-up’ with ‘50 years bold’ global software company, but with a shared focus on innovation, customer success and growth.
Value creation
As well as benefitting from StreamSets’ rapid stand-alone growth,
Thirdly, in addition to the top-line synergies,
These factors, combined with the strategic fit and market backdrop, give the Group high confidence in
Financial overview
Purchase price and funding
The purchase price consideration amounts to
Further accelerating growth
On top of this organic development, with the addition of
These updated estimates exclude any impact from purchase price allocation. The Group will provide a further update upon closing.
The Group will continue to update on the progress of its underlying organic business performance.
The transaction is subject to regulatory approvals. The Group expects the transaction to close before the end of the first half of 2022.
Conference call
A webcast for financial analysts and investors will take place on
About
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About
StreamSets’ mission is to make data engineering teams wildly successful. The StreamSets DataOps Platform empowers engineers to build and run the smart data pipelines needed to power DataOps across hybrid and multi-cloud architectures. That’s why the largest companies in the world trust
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