Informatica Corporation (NASDAQ: INFA), a leading provider of data integration software, today announced it has acquired Dublin, Ireland-based Similarity Systems, the leading provider of business-focused data quality solutions. Further extending its market-leading solution for enterprise data integration, Informatica will incorporate Similarity Systemsâ patented technology for data qualityâincluding capabilities for data profiling, standardization, cleansing, matching and monitoringâinto its PowerCenter data integration product suite.
Informatica is acquiring all of the capital stock of privately held Similarity Systems in a cash transaction valued at approximately $55 million, with the acquisition being accounted for under the purchase method of accounting. The acquisition has been approved by the board of directors of each company and will close today. Informatica expects the acquisition to be dilutive in the first half of 2006 and to be accretive to non-GAAP earnings before amortization of intangibles and stock-based compensation beginning in the fourth quarter of 2006.
âData quality is ranked by our customers as one of their top challenges within their broader data integration projects, such as legacy migration, application consolidation and data hubs,â said Sohaib Abbasi, chairman and CEO of Informatica. âCombining the innovative technology from Similarity Systems with PowerCenter, we will offer distinctive total data quality management to our customers as an integral part of the Informatica enterprise data integration platform.â
Industry analysts estimate the global market for information-quality solutions will grow by 12 percent annually to $1 billion by 2008, underscoring the growing importance of data quality to such business imperatives as regulatory compliance.
âVentana Research has long espoused the concept of Information Management, which comprises key technologies to drive the use of information to enhance business value. Two critical components of Information Management are robust enterprise data integration coupled with data quality,â said Mark Smith, CEO and senior vice president of research of Ventana Research. âThe combination of Informaticaâs data integration platform with the data-quality technology from Similarity Systems goes a long way in delivering on the need for Information Management for global organizations.â