Progress Software Sells Off More Product Lines2:12 PM EST Fri. Oct. 19, 2012
Progress Software will sell its Sonic, Savvion, Actional and DataXtend product lines to the investment arm of Trilogy Enterprises as Progress continues its efforts to focus on its core application development and deployment business.
Progress did not disclose the terms of the deal, which the company said is subject to customary closing conditions and is expected to be completed in November. Progress described Austin, Texas-based Trilogy Enterprises as "one of the largest privately held enterprise software companies in the world."
Earlier this year Progress announced plans to divest itself of 10 product lines and focus on its core application development and deployment products.
Progress has suffered from shrinking sales this fiscal year, and it's trying to return to growth mode. In its third quarter ended Aug. 31, the company's revenue declined 14 percent year-over-year to $107.2 million.
"We are pleased to announce these divestitures, which represent the continued execution of our strategic plan," said Phil Pead, Progress' executive chairman, in a statement Thursday. "The divestitures announced to date represent 80 percent of Progress' non-core revenue stream and have served to further enhance our management team's focus on our current core business. That said, we remain committed to the expeditious divestiture of the remaining non-core product lines."
Earlier this month, Progress said it would sell its Shadow middleware product to Rocket Software and that deal is pending. In June, Progress struck a deal to sell its FuseSource integration and messaging software to Red Hat for an undisclosed sum.
Progress said the total sales price for the products it has sold off so far is $114 million. Still up for sale are the company's ObjectStore and Orbix product lines, the latter including the Artix and Orbacus products.
At the time of the April announcement of its new direction, the company also said it would lay off between 10 and 15 percent of its global workforce to help cut expenses.
Earlier this month, president and CEO Jay Bhatt announced his departure to pursue what the company called "another leadership opportunity."
PUBLISHED OCT. 19, 2012