Software AG CEO visits new purchase

Karl Heinz Streibich is in Israel this week as Germany's Software AG works to complete the acquisition of 80% of Israeli technology company SPL Software for $61.6m. that was announced last week.

Karl Heinz Streibich is in Israel this week as Germany's Software AG works to complete the acquisition of 80 percent of Israeli technology company SPL Software for $61.6 million that was announced last week. "Achieving a controlling interest in a strong, stable and profitable company such as SPL is something that we are very happy about," the CEO of Software AG told The Jerusalem Post. "It enables us to establish direct customer relationships, extend our business and utilize the experience and contacts of the existing management team." This acquisition had been in the planning stages for almost six months, and the negotiations with Zvi Barinboim, chairman of SPL and controlling partner of Silverboim Holdings Ltd. (the holding company that owns SPL), lasted approximately two months. "The transfer of the controlling interest to a leading international company like Software AG will take SPL to a global level," said Barinboim. Streibich noted that the remaining 20% of SPL would be retained by Silverboim as both sides wished to continue to work together to develop the company and expand its presence around the world. Under the new agreement, SPL will be responsible for internationalizing Software AG's products in countries across Eastern Europe, as AG looks to double revenue to more than € 1 billion by 2011. This acquisition is expected to add €20m. to Software AG's revenues. SPL is a software developer that specializes in billing and customer relationship management for energy companies as well as consulting enterprises in developing business information systems. Software AG develops infrastructure technology to increase the value of enterprise information technology systems. The two companies have more than 30 years of cooperation between them, as SPL develops technology-based business solutions using Software AG's database software, developer's programming language and Crossvision Suite. Currently, SPL provides services for more than 80 organizations, including banks, government offices, insurance companies and telecommunications providers. "We are not planning any changes in the leadership of SPL as the way they are now they present an excellent business partner," "said Streibich, who called the management team "incredible." The merger is expected to take effect on Sunday.