Believing it should have a single, cohesive platform for the development of cloud and mobile application development technologies, Progress Software (NASDAQ:PRGS) announced this morning it was selling its Apama complex event processing solution to Software AG for an undisclosed sum.
Apama is one of the leading platforms in capital markets for building high-frequency trading applications that allows business events to be correlated and analyzed across multiple data streams in real-time.
Progress said the Apama platform held significant differences from its own application development software, particularly in terms of the target market, deployment, and sales model. By divesting itself of the platform, the investment made by Apama's customers will be protected.
Progress's Chief Technology Officer and Apama Co-Founder Dr. John Bates said: "Progress and Software AG are committed to ensuring a smooth transition for our Apama customers and employees around the world and will provide customers with uninterrupted support and continued platform development."
Bates is expected to join Software AG to lead the Apama business unit. Progress expects the transaction to be completed in its fiscal 201 third quarter.
Pacific Crest Securities is serving as Progress's financial advisor, and Wilmer Cutler Pickering Hale and Dorr is serving as Progress' legal counsel.
Fool contributor Rich Duprey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.