Summary

Other Scenarios:

Buyer: Tibco Software Inc. (TIBX) Last Price: 8.92 Market Cap.: 1.86B
Target: webMethods, Inc. (WEBM) Last Price: 9.14 Market Cap.: 518.73M

Lines of Business Summary:

Product Summary:

Overlap & Complementary Sectors

Sector Buyer Target # of Focused Companies
*Technology 1,217
Software 304
Design/Engineering 39
Software Development   8
Website Development   1
Enterprise Management 78
Business Intelligence   9
Enterprise Resource Planning (ERP) 25
IT Infrastructure 50
Communications 5
Enterprise Application Integration (EAI)/Middleware 10
Network   19

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Sample Products in Similar Lines of Business

Sample Products in Complementary Lines of Business
Buyer (Total: 24)
  • TIBCO Enterprise Message Service (JMS)
  • TIBCO Adaptors
  • TIBCO BusinessWorks
  • TIBCO Smart Sockets
Target (Total: 11)
  • webMethods Integration Platform
  • webMethods Manager
  • webMethods Monitor
  • webMethods Adapters
Buyer
  • TIBCO XMLTransform
  • TIBCO XMLCanon/Developer
  • TIBCO TurboXML
  • TIBCO XMLValidate
Target
  • webMethods Glue
  • webMethods Workflow
  • webMethods Integration Platform
  • webMethods Optimize

Business Relationship Summary:

Top Key Suppliers

Top Key Customers
Buyer (Total: 0)

n/a
Target (Total: 1)
  • ePlus Inc. (PLUS)
Buyer (Total: 29)
  • Reuters Group PLC (ADR) (RTRSY)
  • Chevron Corporation (CVX)
  • Novartis AG (ADR) (NVS)
  • Telefonica S.A. (ADR) (TEF)
Target (Total: 37)
  • Vodafone Group Plc (ADR) (VOD)
  • Verizon Communications Inc. (VZ)
  • Wells Fargo & Company (WFC)
  • Wachovia Corporation (WB)

Key Financial Summary:

Key Metrics

  Buyer Target
Number of Employees 1,597 826
Revenue Per Employee 314,998.0 256,524.5
Total Revenue 125.7 51.2
Total Expenses 114.1 56.0
Other Revenue 0.0 0.0
Cost of Revenue 34.9 15.7
SG&A Expense 55.7 28.9
Research & Development 21.0 11.4
Other Operating Expense 0.0 0.0
Operating Income 11.6 -4.8
Unusual Income 0.0 0.0
LT Debt to Capital 4.7 0
Fwd P/E 25.85 -130.14
Fwd P/Rev 3.18 2.45
Book Value 928.1 214.0
Curr Portion of LTD/Cap Lease 1.9 0.0

Individual Company Summary

Focused

Buyer

Focused (): *Technology > Software > IT Infrastructure > Enterprise Application Integration (EAI)/Middleware

Target

Focused (): *Technology > Software > IT Infrastructure > Enterprise Application Integration (EAI)/Middleware

Business Description

Buyer

TIBCO Software Inc. (TIBCO) is a business integration and process management software company that enables real-time business. TIBCO provides software that enables interoperability between applications and information sources, coordinates processes that span systems and people. The Company?s products are licensed by companies worldwide in diverse industries, such as financial services, telecommunications, retail, healthcare, manufacturing, energy, transportation, logistics, government and insurance. The Company offers a range of software products that can be sold individually to solve specific technical challenges. TIBCO?s professional services offerings include a range of consulting services, such as systems planning and design, installation and systems integration for the rapid deployment of TIBCO products. The Company offers a suite of software support and maintenance options.

Target

webMethods, Inc. is a provider of business integration and optimization software. The Company markets and sells its products and solutions primarily to the 2,000 corporations worldwide (the Global 2000) and government agencies. It licenses software and sells its services primarily through its direct sales organization augmented by other sales channels, including the Company's software vendor partners, systems integrators with whom the Company has alliances, other partners and distributors, and to a lesser extent, resellers. As of March 31, 2006, it had approximately 1,400 customers worldwide, distributed across its target markets in manufacturing, process industries, consumer goods manufacturing and retail, government and telecommunications. In August 2005, it announced a partnership and reseller agreement with NEON Systems, Inc. In September 2006, the Company completed the acquisition of Infravio, Inc., a provider of service-oriented architecture registry and governance solutions.

Deal Summary

Key Ratios

  Buyer Target
Gross Margin % 74.28 67.25
Operating Margin % 14.27 -12.78
Quick Ratio 3.79 2.22
Current Ratio 3.99 2.31
Coverage Ratio 0.25 -0.24
Total Assets 1,180.2 305.2
Return on Equity % 8.37 -8.61
Return on Assets % 6.58 -6.04
Cash+ ST Inv. Per Share 2.53 2.36
Total Debt 47.7 0.0
Total Debt to Equity % 5.14 0.01
Total Debt to Tangible Equity % 7.89 0.02
Debt to Asset % 4.04 0.01

Product Summary

Sector Buyer Target
*Technology
Software
Design/Engineering
Software used in professional design and development applications, including the design of integrated circuits, creating/editing multimedia productions, and creating web-based or stand-alone software applications.
Enterprise Management
Software designed to maximize the efficiency and productivity with which the enterprise is run. Includes Customer Relationship Management (CRM) and Enterprise Resource Planning (ERP) software.
IT Infrastructure
Software, employed typically by the IT department of an enterprise, which ensures that computer based systems perform efficiently and securely.

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Product Details

Sector Buyer Target
*Technology
Software
Design/Engineering
Software Development  
Development Environments  
General  
Standard Programming Languages
Software development environments that permit programming using any number of widely-used standard programming languages such as Basic, C, C++, Java, COBOL, and Fortran.

Buyer Products:

  • TIBCO XMLTransform
  • TIBCO XMLCanon/Developer
  • TIBCO TurboXML
  • TIBCO XMLValidate
  
Website Development  
Website Authoring/Publishing
Software used to create non-transactive Websites.

Target Products:

  • webMethods Glue
  
Enterprise Management
Business Intelligence  
Data Warehouse  
Management
Software that manages the operation of a data warehouse. Includes OLAP (Online Analytical Processing) capabilities.

Buyer Products:

  • TIBCO DataExchange
  
Enterprise Resource Planning (ERP)
Business Planning/Control
Business Process Automation/Monitoring
Software used to identify bottlenecks and to streamline business processes.

Buyer Products:

  • TIBCO Enterprise Management Advisor
  • TIBCO Staffware Process Suite
  • TIBCO OpsFactor

Target Products:

  • webMethods Workflow
  • webMethods Integration Platform
  • webMethods Optimize
Supply Chain  
Channel Partner Management
Software, including sourcing and catalog management, which helps improve supply chain efficiency through improved partner communication and control.

Target Products:

  • webMethods Trading Networks
  
IT Infrastructure
Communications
Data
File Transfer
Communications software that controls and manages the transfer of digital files over network connections, often using File-Transfer Protocol (FTP).

Buyer Products:

  • TIBCO PartnerExpress
  
Messaging Servers/Systems
Server software stores, manages, and accesses text-based messages such as e-mail and fax.

Buyer Products:

  • TIBCO SmartPGM

Target Products:

  • webMethods Mainframe
  • webMethods Broker
Enterprise Application Integration (EAI)/Middleware
Adaptors/Integration Brokers
Software that allows disparate applications to exchange data through adaptors and industry standard interfaces such as object request brokers (ORB). Does not include application-specific APIs.

Buyer Products:

  • TIBCO Enterprise Message Service (JMS)
  • TIBCO Adaptors
  • TIBCO BusinessWorks
  • TIBCO Smart Sockets
  • TIBCO BusinessWorks SmartMapper
  • TIBCO Rendezvous

Target Products:

  • webMethods Integration Platform
  • webMethods Manager
  • webMethods Monitor
  • webMethods Adapters
Application Servers
Server software that comprises the middle tier of a three-tier architecture. Application servers execute all application logic and then output the information to thin clients.

Buyer Products:

  • TIBCO BusinessPartner
  • TIBCO BusinessConnect

Target Products:

  • webMethods Servicenet
  • webMethods Integration Platform
Database Access/Connectivity
Database connectivity software designed to allow enterprise applications access to information stored in databases. Access technologies include: distributed relational database architecture (DRDA), Java databse conectivity (JDBC), and open database connectivity (ODBC).

Buyer Products:

  • TIBCO Substation ES
  • ObjectStar International ObjectStar Integration Suite
  • TIBCO Adaptors

Target Products:

  • webMethods Integration Platform
  • webMethods Monitor
Enterprise Portal Deployment
Software which enables IT administrators to create and deploy portals (single point of access to applications and information in a unified interface) accessed within an enterprise.

Buyer Products:

  • TIBCO PortalBuilder
  • TIBCO BusinessWorks SmartMapper
  • TIBCO BusinessWorks
  • TIBCO PortalPacks
  
Network  
Network Administration  
Software Deployment/Configuration
System software that provide functions allowing system administrators to distribute and maintain applications, and to configure user profiles.

Buyer Products:

  • TIBCO Hawk
  
Usage/Performance Monitoring
Software that monitors or tests software and system availability, load, and performance; recording the data for future or real-time analysis.

Buyer Products:

  • TIBCO BusinessFactor
  

- Focused. Denotes that the company is considered focused in this area. In general, Focused Companies draw the majority of their earnings in the sector/product area specified.

- Sector Pure-Plays. Denotes that the company is focused in the selected sector and generates nearly all earnings in the sector/product area specified.

- Sector Participation. Denotes that the company develops products in this line of business.

Relationship Details

Key Competitors

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Microsoft Corporation n/a 291,596.337 21.04 20.25 5.88 5.67 9.70
International Business Machines Corp. n/a 156,174.107 16.22 15.29 1.68 1.61 12.45
Oracle Corporation n/a 98,910.200 24.92 19.53 5.81 5.39 n/a
SAP AG (ADR) n/a 57,807.671 22.50 22.64 4.47 4.13 8.83
BEA Systems, Inc. n/a 4,931.388 34.23 30.37 3.81 3.40 4.82
Pegasystems Inc. n/a 366.765 199.32 113.44 2.91 2.37 2.24
Formula Systems (1985) Ltd. (ADR) n/a 193.908 19.36 n/a 0.35 n/a n/a
Magic Software Enterprises Ltd. n/a 75.885 n/a n/a 1.23 n/a 2.90
Jacada Ltd. n/a 71.325 n/a n/a 3.45 n/a 2.53
Buyer
  Microsoft Corporation n/a 291,596.337 21.04 20.25 5.88 5.67 9.70
International Business Machines Corp. n/a 156,174.107 16.22 15.29 1.68 1.61 12.45
Oracle Corporation n/a 98,910.200 24.92 19.53 5.81 5.39 n/a
SAP AG (ADR) n/a 57,807.671 22.50 22.64 4.47 4.13 8.83
Target
  Microsoft Corporation n/a 291,596.337 21.04 20.25 5.88 5.67 9.70
International Business Machines Corp. n/a 156,174.107 16.22 15.29 1.68 1.61 12.45
Oracle Corporation n/a 98,910.200 24.92 19.53 5.81 5.39 n/a
SAP AG (ADR) n/a 57,807.671 22.50 22.64 4.47 4.13 8.83
BEA Systems, Inc. n/a 4,931.388 34.23 30.37 3.81 3.40 4.82
Tibco Software Inc. n/a 1,859.753 23.95 25.85 3.52 3.18 3.07
Pegasystems Inc. n/a 366.765 199.32 113.44 2.91 2.37 2.24
Descartes Systems Group (USA) n/a 226.056 56.73 20.14 4.35 3.79 7.21
Formula Systems (1985) Ltd. (ADR) n/a 193.908 19.36 n/a 0.35 n/a n/a
DataMirror Corporation (USA) n/a 135.674 29.50 n/a 2.92 n/a 38.42
Magic Software Enterprises Ltd. n/a 75.885 n/a n/a 1.23 n/a 2.90
Jacada Ltd. n/a 71.325 n/a n/a 3.45 n/a 2.53

- Defined by the Company - Defined by Others

Dependent Suppliers

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Target
  ePlus Inc. n/a 81.008 3.39 n/a 0.12 n/a 0.77

- Defined by the Company - Defined by Others

Key Customers

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Entrust, Inc. n/a 242.882 n/a 80.00 2.46 2.14 n/a
Buyer
  Reuters Group PLC (ADR) 5.00% 15,552.207 25.62 30.81 3.05 3.01 n/a
Chevron Corporation n/a 174,367.588 9.76 10.33 0.86 1.00 2.61
Target
  Vodafone Group Plc (ADR) n/a 161,461.289 n/a 13.43 2.69 2.58 11.96
Verizon Communications Inc. n/a 123,392.975 20.36 17.95 1.38 1.35 n/a
Wells Fargo & Company n/a 120,665.063 13.86 13.20 3.67 3.11 7.23
Wachovia Corporation n/a 105,387.483 12.60 11.22 2.95 3.16 3.59
Wyeth n/a 77,629.178 17.92 16.62 3.72 3.60 7.23
Nippon Telegraph & Telephone Corp. (ADR) n/a 63,598.121 16.02 16.06 0.71 0.71 1.40
Medtronic, Inc. n/a 61,159.567 21.83 19.88 4.97 4.51 11.72
SAP AG (ADR) n/a 57,807.671 22.50 22.64 4.47 4.13 8.83
Occidental Petroleum Corporation n/a 45,826.417 11.00 12.45 2.49 2.97 2.27
Motorola, Inc. n/a 42,565.841 15.23 52.17 1.00 1.04 4.11
Telstra Corporation Limited (ADR) n/a 40,160.068 17.54 19.31 2.07 n/a 7.30
Starbucks Corporation n/a 21,193.617 34.26 32.17 2.47 2.21 10.79
MasterCard Incorporated n/a 18,786.646 135.78 29.14 5.36 4.87 8.95
McKesson Corporation n/a 18,533.685 20.30 19.30 0.20 0.19 5.92
Weyerhaeuser Company n/a 17,399.230 9.75 45.18 0.96 0.99 3.06
Stora Enso OYJ (ADR) n/a 15,001.231 19.04 17.18 0.74 0.73 1.46
United Utilities PLC (ADR) n/a 13,458.260 15.75 n/a 3.06 n/a 2.72
Solvay S.A. (ADR) n/a 13,405.454 12.89 n/a 1.05 n/a n/a
Rohm and Haas Company n/a 11,431.206 15.88 14.72 1.37 1.31 10.87
Nortel Networks Corporation (USA) n/a 11,259.335 117.28 38.27 0.98 0.98 n/a
NEC Corporation (ADR) n/a 10,469.297 n/a 29.65 0.26 n/a 1.56
Rockwell Automation n/a 10,449.651 7.09 18.33 2.00 2.11 7.95

- Defined by the Company - Defined by Others

Key Partners

  Name Dir Percent Market Cap. P/E Ratio (TTM) Fwd P/E P/R Ratio (TTM) Fwd P/Rev Price To Tang. Book Value
Overlap
  Hewlett-Packard Company n/a 122,099.507 19.10 16.33 1.26 1.20 10.14
Oracle Corporation n/a 98,910.200 24.92 19.53 5.81 5.39 n/a
Accenture Ltd. n/a 31,700.337 24.97 20.80 1.62 1.62 22.33
Wipro Limited (ADR) n/a 23,303.668 33.37 27.87 6.51 5.16 11.30
Electronic Data Systems Corporation n/a 14,461.867 23.71 17.96 0.68 0.65 5.22
Computer Sciences Corporation n/a 9,784.961 27.77 15.24 0.67 0.65 4.31
BearingPoint, Inc. n/a 1,473.652 n/a 21.50 0.43 0.43 n/a
Progress Software Corporation n/a 1,275.784 39.58 20.56 2.78 2.64 5.90
Perficient, Inc. n/a 606.176 54.99 33.93 3.34 2.86 21.34
Entrust, Inc. n/a 242.882 n/a 80.00 2.46 2.14 n/a
Atos Origin S.A. n/a n/a n/a n/a n/a n/a n/a
Deloitte & Touche LLP n/a n/a n/a n/a n/a n/a n/a
Cap Gemini Ernst & Young Group n/a n/a n/a n/a n/a n/a n/a
Buyer
  Cisco Systems, Inc. n/a 154,938.425 22.30 20.65 4.63 4.44 9.05
Intel Corporation n/a 128,749.593 24.19 20.53 3.65 3.46 3.94
Target
  Microsoft Corporation n/a 291,596.337 21.04 20.25 5.88 5.67 9.70
Hewlett-Packard Company n/a 122,099.507 19.10 16.33 1.26 1.20 10.14
Oracle Corporation n/a 98,910.200 24.92 19.53 5.81 5.39 n/a
Accenture Ltd. n/a 31,700.337 24.97 20.80 1.62 1.62 22.33
Wipro Limited (ADR) n/a 23,303.668 33.37 27.87 6.51 5.16 11.30
Electronic Data Systems Corporation n/a 14,461.867 23.71 17.96 0.68 0.65 5.22
Computer Sciences Corporation n/a 9,784.961 27.77 15.24 0.67 0.65 4.31
NCR Corporation n/a 9,433.955 25.16 19.60 1.52 1.47 5.15
CGI Group Inc. (USA) n/a 3,343.003 20.00 15.12 1.04 1.01 n/a
Fair Isaac Corporation n/a 2,129.259 21.14 23.14 2.59 2.63 n/a

- Defined by the Company - Defined by Others

Financials

  Buyer Target Combined Entity
Income Statement
Operating Items
Revenue 528.4 201.1 729.4
Other Revenue 0.0 0.0 0.0
Total Revenue 528.4 201.1 729.4
Cost of Revenue 135.9 65.9 201.8
SG&A Expense 223.6 112.6 336.1
Depreciation & Amortization 9.6 0.0 9.6
Research & Development 85.0 45.9 130.8
Interest Expense 0.0 0.0 0.0
Other Operating Expense 0.0 0.0 0.0
Unusual Expense (Income) -1.0 2.5 1.4
Total Expenses 453.0 226.8 679.7
Operating Income 75.4 -25.7 49.7
Non Operating Items
Interest Expense (Inc.), Net Non-Oprtng 19.1 6.3 25.3
Other, Net 0.1 1.0 1.1
Income Before Taxes 94.6 -18.4 76.1
Income Taxes 16.9 0.0 16.9
Income After Taxes 77.7 -18.4 59.2
Minority Interest (IS) -0.0 0.0 -0.0
Net Income - Excl. Xord. Items 77.7 -18.4 59.2
Net Income - Incl. Xord. Items 77.7 -18.4 59.2
Income Avail. to Common 77.7 -18.4 59.2
Share Items
Basic Avg. Shares Outstanding 208.4 56.5 264.9
Basic EPS - Excl. Xord. Items 0.37 n/a 0.22
Basic EPS - Incl. Xord. Items 0.37 n/a 0.22
Full Dilution Adjustment 0.0 0.0 0.0
Fully Diluted Shares Outstanding 216.3 56.5 272.8
F.D. EPS - Excl. Xord. Items 0.36 n/a 0.22
F.D. EPS - Incl. Xord. Items 0.36 n/a 0.22
Balance Sheet
Assets
Cash and Equivalents 127.2 87.1 214.3
ST Investments 420.5 46.1 466.6
Accounts Receivable 102.4 51.9 154.3
Inventory 0.0 0.0 0.0
Prepayments and Advances 0.0 5.7 5.7
Other Current Assets 34.8 1.2 36.1
Current Assets 684.9 192.1 877.0
Accum D&A 0.0 0.0 0.0
PPE, Net 112.4 13.9 126.2
Goodwill & Intangibles 323.1 92.2 415.3
Long Term Investments 0.0 1.0 1.0
Other Assets 0.0 0.0 0.0
Other LT Assets 59.8 6.0 65.9
Total Assets 1,180.2 305.2 1,485.4
Liabilities
Accounts Payable 9.6 10.0 19.6
Payable/Accrued 0.0 0.0 0.0
Accrued Expenses 57.0 23.6 80.5
ST Debt 0.0 0.0 0.0
Curr Port of LTD & Cap Lease Oblg 1.9 0.0 1.9
Other (Current) Liabilities 103.1 49.6 152.7
Current Liab. 171.6 83.2 254.8
LT Debt 45.8 0.0 45.8
Total LT Debt 45.8 0.0 45.8
Minority Interest (BS) 0.3 0.0 0.3
Deferred Taxes 10.0 0.0 10.0
Other LT Liab. 24.4 8.0 32.3
Total Liabilities 252.1 91.2 343.2
Shareholders Equity
Common Stock 0.2 0.0 0.2
Additional Paid in Capital 905.6 0.0 905.6
Retained Earnings 13.3 0.0 13.3
Other Equity 9.0 214.0 223.0
Total Equity 928.1 214.0 1,142.1
Total Liab. & Equity 1,180.2 305.2 1,485.4
Shares Outstanding 208.4 56.8 265.1
Cash Flow
Operating Cash Flow
CF Net Income 77.7 n/a 77.7
CF Depreciation 16.0 n/a 16.0
CF Amortization 15.0 n/a 15.0
CF Deferred Taxes -19.5 n/a -19.5
Other Non-Cash Items 13.1 n/a 13.1
Change in Working Capital 15.0 n/a 15.0
Total Cash From Operating Activities 117.1 n/a 117.1
Investing Cash Flow (not calculated)
Capital Expenditures -12.7 n/a -12.7
Other Investing Cash Flows -29.8 n/a -29.8
Total Cash From Investing Activities -42.5 n/a -42.5
Financing Cash Flow (not calculated)
Dividends Paid 0.0 n/a 0.0
Purchase Or Sale of Stock -82.2 n/a -82.2
Purchase and Retirement of Debt -2.0 n/a -2.0
Other Financing Cash Flow 24.2 n/a 24.2
Total Cash From Financing Activities -60.0 n/a -60.0
Exchange Rate Effects 1.7 n/a 1.7
Net Change in Cash 16.3 n/a 16.3
Cash Taxes Paid 14.5 n/a 14.5
Cash Interest Paid 2.8 n/a 2.8