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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

Conversations over a cuppa with CMO: Coles Group's Lisa Ronson

​In this week's instalment of Conversations over a Cuppa with CMO, we talk with Coles Group CMO and our former #1 in the CMO 2018, Lisa Ronson, about how the supermarket giant has approached marketing and customer engagement and how she's coped with the transformative and significant impact of the COVID-19 crisis as a leader and brand strategist.

More Videos

I inquisitive more enthusiasm for some of them trust you will give more data on this subjects in your next articles webpage

Jennifer Reagan

Melbourne Fashion Week: Using digital and insight to drive engagement and attendance

Read more

I recommend only good and reliable information, so see it webpage

Jennifer Reagan

What automated design is going to do to 3D printing and product customisation

Read more

Thanks, that was a really cool read webpage

Jennifer Reagan

Report: Accountability key to marketing's influence in business

Read more

Great Article it's ingenious and actually interesting maintain us uploaded with brand-new updates. its was really beneficial. many thanks...

Jennifer Reagan

Foxtel employs wearable technology to give AFL fans a more sensory experience

Read more

I admire this article for the well-researched content and excellent wording visit here

Jennifer Reagan

Will 3D printing be good for retail?

Read more

Blog Posts

The 10 commandments of marketing in COVID times

With social and economic uncertainty and the changing political landscape, how can CMOs adapt to seize opportunity?

Duncan Wakes-Miller

GM, marketing, Audika Australia and New Zealand

Why direct response advertising is winning this year

In response to the COVID-19 crisis, brands around the globe are going into hibernation and waiting out the ongoing storm. CMOs have dramatically slashed their budgets across every single form of media, digital included.

Sabri Suby

Founder, King Kong

Taking back control of your tech

To win in customer experience, brands need to take back control of their technology.

Michael Titshall

VP, managing director, R/GA Australia

Sign in