Progress Software Acquires Crescent Software to Enhance Microsoft Visual Basic Development

Strategic Insights -

Progress Software Corporation has announced the acquisition of Crescent Software, Inc., a leading provider of Visual Basic add-on components, to form a new division that will complement and enhance Microsoft's Visual Basic programming language. This strategic move expands Progress Software's focus on meeting the needs of enterprise-class application developers, building on its PROGRESS development environment. The acquisition is the first step in Progress Software's strategy to support the growth of Visual Basic in the departmental market, leveraging its experience in providing superior application development technology.

Key Takeaways:

  • Progress Software has acquired Crescent Software, Inc., a leading provider of Visual Basic add-on components, to form the Crescent Division of Progress Software Corporation.
  • The acquisition is the first step in Progress Software's strategy to support the growth of Visual Basic in the departmental market, leveraging its experience in providing superior application development technology.
  • The Crescent Division will retain its operations in Ridgefield, Conn., and will be based out of Progress Software's Bedford Mass. headquarters.
  • Jennifer Bergantino will serve as director for the Crescent Division, and Eric Frey, vice president of technology, will head the development of new products for this market.
  • The acquisition will be accounted for as a purchase, and accordingly, the results of operations will be included in Progress Software's operating results from the date of acquisition.
  • The purchase price includes approximately $2,500,000 of in-process software development, which will be charged to operations in the first quarter of fiscal 1995.
  • Progress Software Corporation will continue to market the PROGRESS Application Development Environment, which consists of the PROGRESS Visual Programming Environment, the PROGRESS RDBMS, and associated tools for application development and end-user query and reporting.

Statistics:

  • The acquisition price consists of $2,200,000 in cash and $800,000 in assumed and other liabilities.
  • Proportion of the acquisition price allocated to in-process software development: approximately 83.3% ($2,500,000 of $3,000,000).
  • Estimated timeframe for availability of PowerPak Pro: Q1 1995.
  • Estimated timeframe for availability of EnQuiry: Q2 1995.
  • Estimated timeframe for availability of "Stingray": second half of 1995.

Sources:

  • Progress Software Corporation press release dated January 9, 1995.
  • Financial data from Progress Software Corporation's operations reports.