Software AG Sells SAP-Service Operations in North America to itelligence

Software AG has agreed to sell its SAP-service operations in Canada and the USA to itelligence, a full-service provider of IT solutions for the SAP market with approximately 2,700 employees in 21 countries. Its headquarters are in Bielefeld, Germany. The transaction closing is scheduled for January 16 and according to the companies the purchase price will not be disclosed. The transaction includes all of Software AG’s SAP product-specific services in Canada and the U.S., which are coordinated from Toronto and Reston, Virginia respectively. In addition, itelligence plans to acquire the majority of around 80 employees as of January 16.

The sale of Software AG’s SAP-related activities demonstrates consistent implementation of its corporate strategy, according to Software AG, which says that the company’s consulting division will intensify its focus on the process side of SAP environments in the future. The Canadian and U.S. SAP service operations, the company points out, did not have this core focus, as the division was acquired by IDS Scheer in 2003 from Austrian software firm Plaut AG and had operated primarily as an SAP reseller. (In December 2010, Software AG and IDS Scheer AG merged.)

“The transaction fits perfectly into the initiated realignment of our SAP consulting business,” stated Michael Rehm, general manager of IDS Scheer Consulting, in a statement released at the time of the announcement.  “Technologically speaking, we want to get back to our roots. IDS Scheer has always stood for strategic process consulting. And, due to our long tradition of expertise, this is where we can offer customers the greatest added value. Geographically speaking, we will concentrate mainly on Germany, Austria and Switzerland as our core markets.”

Software AG adds that the transaction will have no impact on the expansion of U.S.-based sales and marketing activities aimed at the integration and process software business and big data market. According to Software AG, its Business Process Excellence (BPE) business line performed “very well” in the region in the second and third quarters of last year with license growth above 20%. The Terracotta Big Data products also continued to show “dynamic growth.”

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