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

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.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in