QualityStocks would like to highlight Progress Software Corporation (NASDAQ: PRGS), an enterprise software company providing software solutions to organizations for operational responsiveness. The company’s application development platforms include Progress OpenEdge for the development and deployment of business applications; Progress Orbix to address enterprise integration problems; and Progress ObjectStore to store data with a relational database management system or file-based storage system.
In the company’s news last week,
Progress Software announced it has signed a definitive agreement to sell its Sonic, Savvion, Actional, and DataXtend (DXSI) product lines to Trilogy Enterprises’ investment arm. Trilogy Enterprises is one of the biggest privately held enterprise software companies in the world. The terms of the transaction have not been disclosed.
The agreement with Trilogy Enterprises represents the continued execution of Progress Software’s strategic plan. Progress’ focus on increasing growth, profitability, and shareholder value will continue as the company concentrates on providing the most productive, cost-effective, on-premise cloud-enabled and mobile-enabled platforms for developing, deploying, and maintaining the best business applications in the world. To date, the announced divestitures represent 80 percent of the company’s non-core revenue stream and have served to further enhance Progress’ management team’s focus on current core business. Progress remains committed to the timely divestiture of its remaining non-core product lines.
Subject to customary closing conditions, the transaction is expected to be completed in November 2012. After completion of the transaction, ObjectStore and Orbix (which include Artix and Orbacus products) will be Progress’ only product lines remaining to be divested. The company has, to date, completed its previously announced sale of FuseSource to Red Hat and anticipates that the sale of its Shadow product line to Rocket Software will also be completed soon.
In total, the sales price to date for all divested products and products under agreement to be divested is around $114 million. The combined fiscal 2012 year-to-date revenue of these products is $83 million, representing around 80 percent of Progress’ total non-core revenue stream.
Pacific Crest Securities LLC is serving as the financial advisor for Progress on the transaction, and Wilmer Cutler Pickering Hale and Dorr LLP is serving as the company’s legal counsel.
Progress Software is a worldwide software company focused on simplifying the development, deployment, and management of business application on-premise or on any cloud, any platform, and any device with minimal IT complexity and low total ownership cost.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
