Data integration provider Software AG has acquired StreamSets, another data integration provider.
With this acquisition, Software AG adds a sizeable and fast-growing SaaS and subscription business that is growing rapidly, with StreamSets’ revenue having grown at a four-year CAGR of more than 70 percent through 2021.
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 €61 billion total addressable market. In this case, the deal will see Software AG enter the cloud data integration portion of the wider data integration market, a segment growing 26 percent annually in a market projected to reach $3.5 billion by 2025.
“This acquisition is a major milestone for Software AG. We’re acquiring a fast-growing business in a cloud market growing 26 percent,” said Sanjay Brahmawar, Software Ag’s CEO. “Their base in California also extends our presence in North America, and I am incredibly excited at the prospect of working with them to grow our business together.”
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, Databricks and Snowflake. The combined hybrid iPaaS platform will deliver consolidated, conformed, continuous data to smart applications and the connected enterprise.
The purchase price consideration amounts to €524 million plus a customary retention package, agreed with and awarded to StreamSets senior management, and transaction fees. The transaction will be funded by cash and the group’s existing credit facilities.
With the addition of StreamSets, Software AG expects 2022 non-IFRS Group product revenue growth in the range of 12 percent to 16 percent. The Group also expects to see an impact on non-IFRS EBITA of between -€17 million and -€13 million in 2022.
Software AG also expects the acquisition to add to its organic growth in 2023. With the addition of StreamSets to the organic business, the group expects total revenue to be comfortably ahead of its €1 billion goal.
