Canadian business intelligence software maker Cognos Inc completed its $53.1m cash acquisition of Swedish financial consolidation and reporting vendor Frango AB yesterday.
Cognos originally announced its intent to buy the Stockholm-based company in August this year to bolster its corporate performance management (CPM) strategy.
Officials at Ottawa-based Cognos expect Frango to add between $4m to $5m to its third quarter (ended November 30) revenues. The year-end contribution is expected to fall in the $13m to $14m range.
Officials say the deal will be slightly dilutive (i.e. neutral to one cent negative) for both reported time periods.
The finalization of the deal sparked a move from Cognos’ performance management rival SRC Software Inc to terminate a reseller/distribution agreement with Frango.
Instead, Portland, Oregon-based SRC says it will open direct sales and support offices in Europe and Southeast Asia to channel its Advisor product line. These offices are expected to open in November.
SRC also says it will provide credits to Advisor customers that have already forked out for local support. Additionally, these customers will also be offered nine other discounted performance management products that Frango was not authorized to sell.
Now that the Frango deal is signed and sealed, Cognos will publicly announce its integration plans as part of an analyst day being held in Chicago this week. The company is also expected to lay out its 2005 growth strategy and detail the launch of its Series 8 business intelligence (BI) platform.