According to the 10-Q for Informatica Nov 5th, 2009, they paid $27.8M for AddressDoctor (a little more than the $20M guess by 451 group back in June) and $35M for Agent Logic respectively. Informatica continues to efficiently acquire pieces of the MDM ecosystem, without necessarily jumping into the MDM pond and competing directly with IBM, Oracle, SAP and best of breed players like Siperian (disclosure, my former company) and Initiate Systems. Not that the moves haven’t been competitive. The acquisition of AddressDoctor was a key component of the MDM ecosystem and a prize that IBM (who had reportedly been in talks with AddressDoctor for a long time) had coveted but was unable to consummate. Additionally, AddressDoctor is the second major OEM component of Siperian’s that Informatica has acquired, putting Siperian in a very cozy or vulnerable position with Informatica depending on how you look at it. Informatica’s public position for now, is that you don’t need a Master Hub but rather with all of the data movement, management, quality tools that Informatica provides you can either build your own or use them to feed into those MDM platforms that are on the market. So clearly the price is right for Informatica for MDM ecosystem components. Who will be the next company to “come on down?”
Here are the extracted details from the 10-Q:
On June 2, 2009, Informatica GmbH, our wholly owned subsidiary, acquired AddressDoctor, a limited liability company duly organized and existing under the laws of the Federal Republic of Germany. AddressDoctor is a leading provider of international address verification and cleaning solutions which enables users to validate and correct postal addresses and assists in the data capturing process. We acquired all of the capital stock of AddressDoctor for $27.8 million of which $4.5 million is held in an escrow fund as security for losses incurred by us in the event of certain breaches of the merger agreement by AddressDoctor. The escrow fund will remain in place for a period of eighteen months, although 50% of the escrow funds will be paid out 12 months subsequent to the date of acquisition.
On September 1, 2009, we acquired Agent Logic, a privately held company Incorporated in Delaware. Agent Logic specializes in the development and marketing of complex event processing software which supports security initiatives in highly complex environments. We acquired all of the capital stock of Agent Logic for $35 million of which $6.1 million is held in an escrow fund as security for losses accrued by Informatica in the event of certain breaches of the merger agreement by Agent Logic. The escrow fund will remain in place for a period of eighteen months, although 50% of the escrow funds will be paid out 12 months subsequent to the date of acquisition. In addition, we are obligated to pay certain variable and deferred earn-out payments based on the percentage of license revenues recognized subsequent to the acquisition.