In an interesting yet not entirely shocking move, OpenText Corporation (NASDAQ:OTEX) has acquired Dutch BPM/SOA leader Cordys for $33 Million. Wall Street appears entirely nonplused, as the stock moved little following the news, and closed near its year-5 high.
Anyone following Cordys recently knew they have been a candidate for acquisition, having effectively shutdown U.S. operations and having faced continual challenges in market adoption, all while possessing (and continuing to develop) one of the most impressive technology sets in the BPM / SOA / Cloud arena.
As a certain well-known Dutch software entrepreneur once said, “the Dutch build great software but are lousy at selling it.” This has been true for Cordys, who never found the sales and marketing success to match their engineering achievements. Most recently it has been resold through Fujitsu, who had selected it as their cloud platform of choice in back in 2011, and more recently had been using it as part of its case management platform as well.
OpenText has been busy over the last year building a competitive channel strategy, which has been evident in its aggressive realignment of its sales team and partner channel, but also with its recent (7/31/31) acquisition of ICCM Solutions, a current partner who built a successful “Assure” ITSM/ITIL solution on OTEX’s MBPM (formerly Metastorm) platform.
This move presents channel complexity not seen with the ICCM acquisition, while offering a technology leverage point (or several of them) that rivals OpenText’s half-billion dollar combined acquisition of Metastorm and Global 360 in 2011.
Anyone who had any doubt about the importance that data and business intelligence will play in the future of processes need look no further than today’s move. As their CEO Mark Barrenechea stated today, "OpenText envisions a world where information and processes are fully integrated, enabling the next generation of Enterprise Information Management applications with out-of-the-box software."
Cordys brings serious integration chops to the “Enterprise Information Management” equation, as well as a Composite Application Framework (CAF) that makes their $33 million dollar price point a very attractive deal. Where OpenText competitor Kofax has made very serious in-roads with BPM in the cloud, on both data integration (vis-à-vis Microsoft Azure) as well as application provisioning, this exciting acquisition really does raise the bar.
It is yet another proof-point that the BPM market remains as hot as ever – in particular for leveraging BPM software an application development framework. Whether we’re reaching the end of the wave of BPM market consolidation, or just the beginning, stay tuned. But we expect this market to get even hotter, very soon.