Informix Announces Definitive Agreement to Acquire Red Brick
MENLO PARK, Calif., Oct. 7 /PRNewswire/ -- Informix Corporation (Nasdaq: IFMX), the technology leader in enterprise database-powered solutions, today announced the signing of a definitive agreement to acquire Red Brick(R) Systems, Inc.(Nasdaq: REDB), The Data Warehouse Company(R). Today's agreement anticipates combining two companies that share a common corporate vision of providing open end-to-end solutions for customers' decision support needs and a culture of technical innovation that solves the most complex data warehousing problems. The complementary strengths of Informix and Red Brick will provide customers with industry leading decision support solutions to gain maximum competitive advantage.
Under the terms of the agreement, each share of Red Brick common stock will be exchanged for 0.6 share of Informix common stock. The transaction will be accounted for as a purchase. Based on the closing sales price of Informix common stock on Wednesday, October 7, the number of outstanding shares of Red Brick common stock and the number of Red Brick options assumed by Informix, the transaction is valued at approximately $35 million. The transaction is expected to close before the end of the year and is subject to the satisfaction of several conditions, including regulatory approval, the approval of Red Brick stockholders and completion of an independent audit of Red Brick's financial results for the first three quarters of 1998.
Informix intends to sell and support the Red Brick product portfolio and to integrate this portfolio into the Informix Decision Frontier product line following the purchase.
"We intend to offer the market the most comprehensive data warehousing solutions in the industry," said Bob Finocchio, Informix CEO and president. "Through this acquisition of Red Brick, we are combining the most powerful data mart and data warehousing technology and consulting expertise, outstanding partnerships and expert distribution channels into one company focused on our customers' success."
"The combined strength of Red Brick and Informix will benefit our customers, partners and stockholders," commented Christopher Erickson, CEO and president of Red Brick. "Red Brick's proven scalable data mart products, technology, and solutions expertise enhance Informix's data warehousing strategy. Together with Informix, our greater resources promise to protect customer investment and deliver the leading complete solution for the data warehousing market."
When the purchase is complete, Red Brick research and development, marketing and data warehouse consulting organizations will be folded into the Informix Data Warehousing Division, managed by Leonard Palomino, vice president and general manager. The Red Brick customer support organization will be integrated with the Informix customer support organization, Red Brick general and administrative will be integrated into the appropriate Informix organizations and the Red Brick sales force will move into the Informix sales organization.
This announcement is the most recent of several decisive steps Informix has taken in executing its core growth strategy to build leadership in data warehousing, high-performance OLTP and Web/E-Commerce.
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