Software AG expands its commitment to IoT with purchase of Cumulocity

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BY : Diego GutiérrezApril Thu, 2017
Karl-Heinz Streibich, CEO of Software AG, said: "With the acquisition of Cumulocity, we are strengthening our market leadership and making it easier for our customers to access the IoT by making available to them the most advanced IoT solutions in the world. benefits of an expanded and holistic product portfoliowhich combines data from physical sensors with innovative analytical software solutions".

Software AG expands its commitment to IoT with purchase of Cumulocity

Software AG is committed to IOT

The purchase of Cumulocity is another example of the commitment of Software AG for the IoT. Cumolocity, based in Düsseldorf, Germany, develops innovative Internet of Things (IoT) solutions for networked digital devices and sensors. With this purchase, AG's customers will be able to integrate their IT applications with IoT devices.

Software AG has already bought the company in 2016. Zementis, specialising in deep learning software, a set of algorithms that is indispensable for building technologies related to IOT applications, among other things.

This week, it has also been announced that Software AG will be the keynote speaker at the second edition of the IoT Madrid Forum, as a platinum sponsor. More than 10 companies will participate in this forum aimed at fostering networking and the creation of synergies between the various sectors and areas involved in the Internet of Things market.

Policy on acquisitions Software AG

 The German Software AG was floated on the stock exchange in 2002 and from 2007 onwards, it began a policy of growth through acquisitions. To date, it has already acquired a total of 16 companies in different technological fields such as cloud computing, IOT, big data...

Software AG's goal when making acquisitions is to integrate and complement new technologies with its own solutions., The best products are offered to enable organisations to take full advantage of the disruptive trends of Big Data, cloud computing, mobility and social collaboration, and to become true "digital enterprises". In addition, the key factor shaping Software AG's acquisition policy is intellectual property. The company is primarily interested in acquiring innovative and attractive technologies that add value to the solutions it develops in-house.

In 2016, in addition to buying Zementis, Software AG bought Connx Solutions, its Redmond-based partner. CONNX Solutions provides critical technology in the area of information integration and replication for Adabas & Natural's customers.

Corporate finance analysis Software AG

In 2016 Software AG achieved a turnover of € 871.8m, an increase of 1% compared to the previous year. The maintenance division increased by 3%, while the licensing division declined slightly. By business area, sales of the digital business platform accounted for more than 50% of total group sales.

Group Ebitda in 2016 reached 272 million euros (259.1 million euros in 2015), with an operating margin of 31.2%, an all-time record for the company. Although gross profit in the fourth quarter was weighed down by extraordinary results (€75.1m compared to €80.1m in 2015), for the year as a whole this item saw an increase to €213.9m (€209.4m the previous year).

The company forecasts sales growth of between 5 and 10% in 2017.

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