Through a tender offer now under way, Sugar Land’s Neon Systems Inc. is being acquired by Progress Software Corp. of Bedford, Mass., in a transaction worth about $68 million.
A merger agreement has been approved by both companies’ boards, according to a joint press statement. Shareholders of Neon, which makes mainframe integration software, are being offered $6.20 a share for their stock. About 44% of Neon’s shareholders already have agreed to sell their shares.
If the tender offer proceeds as planned, Neon will be merged into Progress subsidiary Data Direct Techologies.
“This acquisition lets us meet all of our customers’ data-access requirements, regardless of their environment and where their data sit,” said Data Direct President Rick Reidy in a prepared statement. Data Direct is a leading provider of standards-based data connectivity.
“DataDirect’s rich product set, comprehensive understanding of standards based data connectivity, and extensive market reach will be a tremendous benefit to Neon customers,” said Mark Cresswell, Chief Executive Officer of Neon. “In addition, our web services and event streaming products will be of great value to the many Progress customers currently deploying service-oriented and event-driven architectures utilizing mainframe data.”
