Ardent Software Inc., a maker of database-management tools, has taken a step to try and strengthen its position in the growing data warehousing market. It said today that it will buy Prism Solutions Inc. for about $42 million.
Upon completion of the acquisition, in 60 to 90 days, Ardent plans to integrate Prism's line of business intelligence software, including extraction and transformation tools for data migration, warehousing, and data quality into its line of database and data warehouse development tools. The objective, according to the companies, is to develop a single data warehouse product line.
Under terms of the agreement, Prism Solutions shareholders will receive 0.13124 shares of Ardent Software common stock for each share of Prism Solutions common stock they own. The combined company expects to record a one-time charge of approximately $14 million in the first quarter of 1999, with the transaction to be accretive to Ardent's earnings.