Group 1 To Buy Sagent

Group 1 Software Inc. will acquire the data-integration software assets of struggling Sagent Technology Inc. for $17 million under a deal the companies disclosed Wednesday.

Group 1 plans to combine Sagent's data extraction, transformation, and loading software with its own data-quality software, but also will continue to sell Sagent's products separately. "We're on a pretty fast track to do that," Group 1 chief technology officer Tim Waggoner says of plans to assimilate Sagent's product line. The companies also have geospatial software products that match well, he says.

Once the deal is closed, Sagent will go out of business, although Group 1 likely will hire many of Sagent's 150-plus employees, Group 1 execs say. Group I is based in Lanham, Md., while Sagent is located in Mountain View, Calif.

Approval for the deal is needed from Sagent stockholders and Group 1's directors and is subject to regulatory approval. The asset acquisition is expected to be completed in 90 to 120 days. Group 1 is providing Sagent with $5 million in bridge financing and will provide an additional $2 million once its board approves the acquisition. The $17 million purchase price will be paid in cash and cancellation of repayment of the bridge loans.