News

Borland lands TogetherSoft for $185 million

• By Jack Vaughan
• October 30, 2002

[OCTOBER 30, 2002] - Borland Software Corp. is continuing its software tool buying spree. The company has signed a definitive agreement to acquire Java design and analysis tool maker TogetherSoft Corp. for about $185 million in cash and stock. This follows on the heels of its recent purchase of configuration and versioning management software maker Starbase.

This proposed expansion of Borland’s efforts in the design phase of software development could place it in a stronger position vs. UML powerhouse Rational Software.

The purchase will be paid for using $82.5 million in cash and 9,050,000 shares of Borland common stock. The transaction is valued at $185 million in the aggregate, based upon Borland’s closing.

Founded by UML software guru Peter Coad, TogetherSoft quickly gained attention in design and analysis circles, often being used in conjunction with other Java IDEs. Borland officials note that privately held TogetherSoft has shown positive growth in 2002, a year that has seen many analysis and other software concerns lagging.

Coad is expected to play a role in advancing Borland’s position in software development, according to the company.

The move expands Borland’s position in application development, said Borland CEO Dale Fuller. “It strengthens our ability to continue to compress the development process.

“Customers depend on the ability to develop software faster,” added Fuller. “Accelerating the application development life cycle is important, as it provides a competitive advantage.”

Integrating design and development phases of the application development life cycle offers the most opportunity for time saving, noted Fuller, who added “the architect and the builder need to collaborate.”