For $40 Million, Informatica to Get Applimation

Informatica Corporation, provider of data integration software, has signed a definitive agreement to acquire Applimation, in application Information Lifecycle Management (ILM).

The acquisition is expected to close within a matter of days. Applimation delivers a product portfolio for customers to manage various phases of their application data lifecycle, from testing to archiving. Application ILM reduces total-cost-of-ownership and increases return-on-investment associated with enterprise business applications, such as ERP, CRM, HR and SCM.

A leading industry analyst group estimates that more than 80 percent of data in these enterprise applications is ‘inactive,’ yet such data consumes expensive storage and database capacity. In addition, more than 40 percent of data is estimated to be confidential. Effective lifecycle management of application data lowers storage and database costs, improves performance and ensures confidentiality.

“Our acquisition of Applimation expands our addressable market to encompass an adjacent growth category – application Information Lifecycle Management,” said Sohaib Abbasi, chairman and chief executive officer, Informatica. “The combination of Informatica and Applimation further advances our technology leadership in data integration. Together, we will offer customers a platform to access, integrate and trust all their active and archived data, while reducing total-cost-of-ownership.”

Deployment and on-going administration of enterprise business applications is a time-consuming and expensive process. Successful application deployment dictates testing using multiple, representative ‘real-world’ test data sets, while preserving the confidentiality of any sensitive data. On-going application administration demands cost-effectively managing the ever-increasing data volumes while ensuring acceptable application performance for business users. In addition, new and existing regulatory regimes mandate long-term retention and accessibility of data. To address these challenges, Informatica estimates that organizations spend more than $400 million annually on application ILM solutions. And, industry analysts estimate that this category is growing by more than 30 percent.

Applimation offers a broad product portfolio for customers to cost-effectively manage the data lifecycle. Applimation incorporates the broadest and richest application-aware metadata for packaged applications from Oracle and SAP. This out-of-the-box support covers more than a hundred modules of Oracle, PeopleSoft and Siebel applications. It also covers SAP modules including ERP, HR, CRM, SRM, SCM and APO. Applimation even supports custom applications developed using most major RDBMS and legacy mainframe systems. Applimation has a track record of delivering proven and differentiated value to customers and partners: lower storage and database costs, better application performance and higher data security.

“In this economy, customers understand, now more than ever, the value of taking a holistic approach to application ILM,” said Bob Markese, chief executive officer, Applimation. “By integrating Applimation with the Informatica platform, customers now have a single product portfolio to manage the various phases of their application data lifecycle from data migration, test data management, archiving and application retirement.”

More than 290 customers globally including, Aetna Life Insurance Company, AT&T Mobility, Blue Cross and Blue Shield of Florida, Getty Images, The Hudson’s Bay Company, IKON Office Solutions and Starbucks rely on Applimation solutions.

Informatica will acquire all the capital stock of Applimation in a cash transaction valued at approximately $40 million. The acquisition is subject to customary closing conditions.