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Software AG gobbles up WebMethods

Consolidation in enterprise software continues as two more infrastructure providers combine.

Software AG said it has reached an agreement to acquire enterprise software company WebMethods for $546 million in cash.

Darmstadt, Germany-based Software AG said the purchase will expand its customer base in North America and make it one of the largest providers of service-oriented architecture and business process management software.

Software AG sells infrastructure software to corporations, including its Adabas database and mainframe-based integration software.

WebMethods, based in Fairfax, Va., has a line of server software and tools for connecting disparate data sources and applications.

It purchased start-up Infravio last year in an effort to acquire more tools for managing service-oriented architecture projects.

In a statement, Software AG said that the WebMethods acquisition will help it achieve its goal of doubling revenue to 1 billion euros ($1.3 billion).