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Business Objects To Buy Data Quality Firm Firstlogic

The BI vendor will spend $69 million to help it ensure the quality of business information analyzed by its customers.
Business intelligence firm Business Objects said after market close Wednesday that it plans to acquire Firstlogic, a privately held company specializing in data quality software and services, for $69 million in cash.

Business Objects said the transaction will help it build on its enterprise information management (EIM) strategy, under which it hopes to help customers improve the quality of data they examine for with analytics tools. Data quality problems consistently rank as a major problem for companies trying to carry out effective business intelligence work.

"Building a business intelligence strategy without a complete EIM solution is like trying to complete a puzzle without all the pieces," said Business Objects CEO John Schwarz in a statement.

The deal marks the latest in the business intelligence arena that involves data quality firms. Data integration software maker Informatica purchased data quality firm Similarity Systems for $55 million in cash last month, only a few weeks after BI vendor Cognos agreed to a partnership under which it would make Similarity Systems data quality metrics visible via Cognos 8 BI software.

More than 6,000 businesses worldwide have used Firstlogic technology to ensure the quality of information in their data warehouses, BI systems, CRM apps and other tools. The company was founded in 1984 and has been a formal Business Objects technology partner since 2004.

Firstlogic had sales of more than $50 million in 2005. Business Objects said it expects the transaction to be dilutive on the basis of generally accepted accounting principles, because of one-time charges and purchase accounting adjustments. Business Objects anticipates closing the deal in this year's second quarter.

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