Informix Adds World-Class Data Mart Capability to Industry Leading Data Warehouse Solutions; Informix Announces Definitive Agreement to Acquire Red Brick
Business Wire - October 07, 1998 17:02
MENLO PARK, Calif.--(BUSINESS WIRE)--Oct. 7, 1998--Informix Corporation (NASDAQ:IFMX), the technology leader in enterprise database-powered solutions, today announced the signing of a definitive agreement to acquire Red Brick 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.
About Informix
Informix Corporation, the world's database technology leader based in Menlo Park, California, provides innovative database products that assist the world's major corporations attain competitive advantage. Informix is widely recognized as the technology leader for corporate computing environments ranging from small workgroups to very large parallel processing applications. Informix's database server, application development tools, superior customer service, and strong partnerships enable the company to be at the forefront of major information technology solution areas including data warehousing, high performance OLTP, and Web/E-Commerce. For more information, contact the sales office nearest you or visit our Web site at informix.com.
About Red Brick
Red Brick is a premier provider of data warehousing solutions. Through Red Brick DecisionScape(SM), a comprehensive, integrated environment of products, services, methodology and partnerships, Red Brick helps its customers and partners improve the quality, speed and accuracy of their business decision-making. Red Brick's leading expertise and innovative, server-integrated technology deliver scalable decision support solutions for data warehousing, data marts, OLAP and data mining.
Note to Editors: The following are trademarks of Informix Corporation or its affiliates: Informix(R), the Informix logo is registered with the United States Patent and Trademark Office.
Informix news releases are available at no charge through Business Wire's NewsOnDemand fax service. To immediately receive an index of available releases, call 1-800/356-0851.
Information about Red Brick is available on the World Wide Web at www.redbrick.com. News releases and corporate background information may also be retrieved by fax. For an index of available materials, please call 800/758-5804, and enter PIN No. 105756. Red Brick, the Red Brick logo, and The Data Warehouse Company are registered trademarks, and Red Brick DecisionScape is a service mark and trademark of Red Brick Systems, Inc. All other trademarks are the property of their respective owners.
This public announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results. Investors and potential investors should review carefully the description of the risks and uncertainties which, together with other detailed information about Informix Corporation, is contained in the periodic reports that Informix files from time to time with the Securities and Exchange Commission.
The risks and uncertainties include, but are not limited to: the ability to successfully integrate the Company's and Red Brick's operations; the restatements of the Company's financial statements; growth rates, fluctuations in quarterly results and the seasonality of the Company's business; the Company's dependence upon and ability to attract and retain qualified personnel; risks and uncertainties associated with preferred stock financings; competition and technological changes in the Company's business; international operations and currency fluctuations; the Company's dependence upon proprietary technology; the potential need for additional financing; and pending private securities litigation.
This public announcement contains information that is accurate as of October 7, 1998, the date of the public announcement. The Company disclaims any obligation to update or correct the information as a result of financial, business or any other developments occurring after October 7, 1998.
CONTACT: Wilson McHenry Company
Julie McHenry / Wendy Barbour, 650/638-3400 (Editorial)
jmchenry@wmc.com / wbarbour@wmc.com
or
Informix Software, Inc.
Kate Patterson, 650/926-6809 (Investor Relations)
katep@informix.com
or
Red Brick Systems, Inc. (Editorial)
Carolyn Hughes, 408/399-7216
chughes@redbrick.com
or
Rebecca Kreps, 408/399-7824 (Investor Relations)
rkreps@redbrick.com
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