Ian,
Couln't disagree with you more.
If the current deal goes through, MIFGY is getting a steal. That is, they are not paying enough.
Take a closer look at ISLI's business: IMHO the revenue engines that ISLI has built in their PVCS and DataDirect product lines beat any that MIFGY can bring to the table.
MIFGY has very little OEM, services, or telemarketing business. ISLI is rich in all three.
MIFGY's core tools business is a highly competitive one and from that perspective is no where as desirable as ISLI's infrastructure business (PVCS for application development and DataDirect for runtime).
In the Y2K business, IMHO ISLI's offerings look to edge out those from MIFGY. Consider the following: lets say both have tools on a relative par for the analysis and identification of COBOL source code changes. Then ISLI throws in PVCS to manage the whole process and MIFGY throws in its workbench to actually make the source code changes. Then, we get to services, ISLI's business has been growing by leap frogs. I believe that MIFGY recently made an acquisition along those lines, but my guess is that the value of what ISLI brings to the table here would be greater.
As far as business results go, the latest figures I have is that if the results of both companies were combined over the last 4 fiscal quarters then ISLI would be contributing 55% of the total profits and 52% of the total revenues, or vice versa. In either case, ISLI is the biggest contributor to both categories.
My sense is that MIFGY should be counting its lucky stars that they got such a good deal !!!!!!!!!!!!!
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