Tibco confirms it is exploring 'strategic and financial alternatives'

Potential acquirers of the software vendor include SAP, Hewlett-Packard and even Infosys, according to one analyst

Tibco's board of directors has begun a review of "strategic and financial alternatives," which presumably include a sale, the middleware vendor has confirmed following a news report of its plans.

The board has appointed a committee of independent directors to conduct the review, which began Aug. 16, Tibco said late Wednesday.

The disclosure came about a month after the Wall Street Journal reported Tibco was in early talks about a sale and approaching potential buyers, which included private-equity firms.

"Following a detailed evaluation over the past several months, we have determined that it is prudent to undertake a wide review of strategic and financial options to see which alternative or alternatives, including our standalone plans, are in fact the best way to maximize shareholder value," CEO Vivek Ranadivé said in a statement.

Although Tibco's revenue has grown this year, its stock price has fallen as the company missed analyst estimates and profits dipped.

Tibco sells a wide range of middleware and has been building out its analytics business, which includes the Spotfire data-discovery tool that competes with the likes of Tableau. Earlier this year, Tibco acquired commercial open source BI (business intelligence) vendor Jaspersoft.

Rumors of a Tibco sale have swirled on-and-off for years, with SAP often pegged as a potential buyer.

That outcome "still makes sense," said Holger Mueller, vice president and principal analyst with Constellation Research. SAP's NetWeaver middleware didn't achieve the success the company had hoped for and the addition of Tibco's product set would give it "credibility in the middleware space," Mueller said.

SAP is centering development efforts around the Hana in-memory computing platform, which remains "very database-centric," Mueller said.

In addition, Spotfire is Tibco's "crown jewel" and would complement SAP's Business Objects analytics family, he added.

Hewlett-Packard could be another buyer for Tibco, as it has a "similar problem" to SAP's with a lack of middleware, Mueller said. With Tibco, HP can make a better case to customers that they should build their applications on its cloud, he said.

Systems integrators with ambitions of building products -- such as Infosys, which is now led by former SAP technology chief Vishal Sikka -- are also potential buyers, according to Mueller.

Less likely buyers for Tibco would be Oracle and IBM, which have ample supplies of middleware already. If either did make such a move, it might be more to remove a competitor from the table.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Is AI on course to take over human creativity?

Computers and artificial intelligence have come along at an exponential rate over the past few decades, from being regarded as oversized adding machines to the point where they have played integral roles in some legitimately creative endeavours.

Jason Dooris

CEO and founder, Atomic 212

Are you leading technology changes or is technology leading you?

In a recent conversation with a chief technology officer, he asserted all digital technology changes in his organisation were being led by IT and not by marketing. It made me wonder: How long a marketing function like this could survive?

Jean-Luc Ambrosi

Author, marketer

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Thanks for picking this up. We are always happy to add richness to our products and in turn the lives of our followers and fans.

Fitbit Middle East

​Fitbit announces new virtual race platform to enhance customer experience

Read more

Thanks for a very interesting article. B2B marketing seems tricky. I think that marketing plays a vital part - it can build the brand and...

Aaren

From tactical overhead to strategic growth driver: B2B marketing in the digital age

Read more

meanwhile loads of people with digital skills are not finding work or getting an opportunity to be hired?? Double standards perhaps.

Graduate dying on centrelink

Report reveals Australia faces digital skills shortage

Read more

These laws are in one way or other giving businesses to VPN service providers & other cyber utilities. Just read PureVPN claiming 37%...

Paige Hudson

Getting prepared for mandatory data breach reporting

Read more

Great Post.Thanks for sharing such an informative article.I have worked with Ally Digital Media and it has a very good service which is b...

Utkarsh Kansara

Predictions: 17 digital marketing trends for 2017

Read more

Latest Podcast

More podcasts

Sign in