OSLO, Norway, SEATTLE, Sept. 11, 2001 (PRIMEZONE) -- Birdstep Technology (OSE:BIRD), a Norwegian software vendor, has agreed to acquire all assets of US based Centura Software Corporation (dba Mbrane) (Nasdaq:MBNEQ).
"The acquisition of the assets of Centura Software is very much in line with our 3-pronged strategy for growth," says Terje Andersen, CEO of Birdstep Technology. "We focus on our internal sales efforts, building channels, and acquisitions. This strategy will give us the necessary speed, depth and range when we penetrate our target markets."
Centura's revenue is generated from its database business known as the Raima product lines (formerly Raima Inc.), which is the primary target of Birdstep's acquisition. Raima has performed consistently over the last 6 years and has been persistently profitable, measured on a standalone basis. Visit http://www.raima.com/.
"In addition, this acquisition will give Birdstep access to a very large market and a strong foothold in the growing market for embedded databases. We intend to leverage Centura/Raima's impressive customer base and technology to create greater value for our new and existing customers," says Andersen.
Centura/Raima's embedded database business has accumulated an extensive list of approximately 10,000 loyal customers over the years. Recent customers span a wide spectrum of marketplaces including telecom, networking, financial services, instrumentation, medical, computer equipment and peripherals. They include major corporations such as HP, Computer Associates, Veritas, Lucent, Bloomberg, Nortel, 3Com, Siemens, IBM, Cisco, Sun, NASDAQ, and Johnson & Johnson.
Birdstep will incorporate Raima's technology into the Birdstep Wireless Solution Environment (BWiSE), a portfolio of products and solutions aimed at the fast growing market for wirelessly connected devices and embedded systems. Raima's database technology complements Birdstep's current database offering, allowing the company to cater to the demands of XML-oriented solutions often found in the wireless market, as well as to the more user- and solution-specific needs in the embedded market.
Birdstep has agreed to pay 1.8 million USD cash for all Centura's assets free of debt and liabilities. Additionally, Birdstep will pay a 9,5% royalty on revenues generated from the acquired assets above the break-even point of 4 MUSD, up to a maximum of 2 million USD, over the next four years. Birdstep's subsidiary in the USA, Birdstep Technology Inc., currently located in San Jose, will be the acquiring entity, and Birdstep's operations will be moved to Raima's premises in Seattle. Raima's revenues have been in the 6-8 million USD range over the last 6 years. Due to the difficult financial and operational situation of the parent company, Raima's revenue has been weaker during the first 6 months of 2001. The immediate focus for Birdstep is to restore customers trust in Raima as a long-term leading database partner for the embedded market. The next step will be to fully integrate the two businesses and expand the resulting unit on the basis of superior technology, new offerings and strong market positions.
About Birdstep Technology ASA
Birdstep Technology is the developer of a set of integrated products and solutions targeted at the fast growing market of wirelessly connected devices and embedded systems. Birdstep's portfolio consists of the Birdstep XML DataBase Engine, an award-winning, small footprint native XML database. Birdstep Synchronization, Birdstep IP Zone Software for building secure and billable business solutions within wireless public and enterprise portals, and Birdstep Intelligent Mobile IP Client, software enabling true mobility across various communication infrastructures. Birdstep was founded in August 1996 and has offices in Oslo, Norway and in San Jose, USA.
Also note additional relevant news today: Birdstep Technology demonstrates capabilities and takes a stand in the growing market for public and enterprise wireless solutions. http://www.birdstep.com/