Wednesday, May 7, 2008

CodeGear + Embarcadero = True

As I'm sure you've seen by now, Borland is selling CodeGear to Embarcadero for $23M in cash. Borland also gets to keep $7M in accounts receivables, so the whole package is about $30M.

We had a very upbeat company meeting today, where a lot of questions were answered, and it was clear that CodeGear's leadership is very enthusiastic about this deal. There are a lot of synergies, and not a lot of overlap, and as others have said - once the deal closes (in 30-60 days) we can start doing things that none of us could have done on our own before.

Some  people have said that $30M is a chump change. Cough - I wish I had chump change in that case. ;)

One perspective you can put things is in relation to market caps. So, simply for the exercise of my brain, I noticed that the market cap of BORL as of the close today was $110M according to Yahoo Finance. Based on that number, the CodeGear deal valued at $30M would put us at about 27% of the total market cap. Not too bad at all if you think about it.

The future is bright - I'm convinced that all of our products will continue to grow and prosper under the Embarcadero name. Stay tuned for lots of new things over the coming months and years as well.

10 comments:

  1. "Embarcadero Delphi for Win32 2008". Not sure I like the name! :)

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  2. Great!!! Embarcadero is a super cool company, their software is extremely complex, unique, true database modeling (I've used in Ernst & Young, cap Gemini, for years) and I am super confident that the outstanding Embarcadero upper management and engineering will give Delphi, BCB, JBuilder a true home, finally after all these years!!! So, Great, Congratulations, say hi to everyone from "old" Dan :-)

    I am super confident that the unique database skills Embarcadero always invested in their true / real life products (talking specifically about new ErWin) will naturally merge with Delphi, BCB, JBuilder & Interbase. The amount of opportunity (into innovating together, now with true database players) is simply huge. Both embarcadero and Borland (CodeGear related) products are simply the best. What a great mix!

    I am so happy for you guys!!! I wish we were there together to share this super cool news (the bast in 12 years, that's for sure!!!)

    Now, the best development tools in the world will get a new life, especially in database area. Super Super Super!!!

    Regards,
    Daniel

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  3. Embarcadero should have spent a little less in CodeGear and a little more in server hardware instead. Their servers are so overloaded at the moment :)

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  4. $30 million look cheap because the price paid by Embarcadero is therefore around 50% of 2007 CodeGear yearly revenues. This could be compare for instance with the price paid last year by IBM to acquire Telelogic, which was around 300% of 2007 revenues.

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  5. Arafat Al-ZoughayerMay 7, 2008 at 9:08 PM

    Great !!

    I used Er-Designer from Embarcadero before 5 years ago, It was a very tuned application, so I wish prosperous delphi era . :-)

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  6. 30 million look cheap when we know that their is 3.2 millions users of codegear ! if each user gave 10 $ = 32 Millions $ ...

    probably we don't know everything in this deal :)

    anyway it's very great than embarcadero and codegear are together now ... embarcadero is in any way for codegear 10 times better than borland !

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  7. Thank heaven Delphi is now out of Borlands hands.
    I hope that now Kylix could be revived, even in a limited way,
    as although developers may not use it immediately, its presence in
    the Delphi profile will instill even more confidence and will be a long term catalist in the expansion of Delphi.

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  8. Finally, finally, finally ..

    Delphi is back in the hands of the techies.

    I think even if CodeGear paid Borland to get away from them, it still would have been a bargain.

    What a waste, all these years !!!

    So good luck guys, but just do me ONE big favour.

    A suggestion, just brand the whole lot as ONE company:
    "Delphi". Embarcadero, Codgear ... it really is a little heavy on the tongue! From a branding point of view, this is absolutely essentail then re-brand the products:

    Delphi Studio:
    RAD Modelling
    RAD Database
    RAD Coding
    RAD SQL Studio
    RAD Internet
    RAD Everything,
    etc.

    Something really really simple, not confusing.

    With a cross platform deployment options (ie, Linux ala Kylix)

    THEN, How about "Delphi Everything" for the Itanium and IBM Power6 boxes, so that we can develop some real kick ass products?

    PLUS a on-line store that actually WORK wherever you are in the world,
    with an annual subscription option so that it is easy to help the company make huge profits and give us DECENT integrated products.

    I send you good Karma!
    Go be successful.

    Pieter Viljoen, Infomet

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