The deal broadens Telelogic’s scope into business process modeling, a niche where Popkin has made good headway, but in which it faces stiff competition from other process mapping and management vendors such as IDS Scheer, ProCarta, Mindjet and iGrafx. In its move from applications modeling, testing and configuration management into process management, Telelogic also faces competition from Mercury Interactive, which itself moved from software testing into what it calls IT governance with its acquisition of Kintana in June 2003.
Malmo, Sweden-based Telelogic said Popkin’s software complements its Telelogic Doors requirements management software, and extends its offering into the enterprise architecture arena.
Popkin’s software, System Architect, is used for modeling enterprise systems, IT infrastructures or indeed an entire enterprise’s business processes. Though it supports unified modeling language (UML) – which is also the developers’ modeling standard adopted by Telelogic and competitors that include IBM/Rational, Borland, Compuware, Oracle and others – its software is aimed more at business users than applications developers.
Popkin’s software is said to be adopted primarily by business users, who use System Architect to map out their business processes, in order that they might audit, manage and streamline them.
This is a great match, said Anders Lidbeck, president and CEO of Telelogic. System Architect is often used in combination with Telelogic Doors for understanding both the requirements and processes of organizations. By combining our two companies, we will be able to even better address the needs large companies have for managing their enterprise wide processes and applications.
Telelogic said that customers will now be able to model the enterprise in Popkin’s System Architect, and then detail the model in Telelogic TAU – Telelogic’s systems design and testing suite. Users can also take the business objectives modeled in System Architect and import them into Telelogic Doors for the software design stage.
Telelogic is headquartered in Malmo, Sweden, with US headquarters in Irvine, California. Popkin’s HQ is in New York, and the company employs 180 people. Its sales for 2004 were $19.1m, up 28% year on year, and it is said to have posted EBITA of $2.5m for 2004. Telelogic said the acquisition is expected to be cash flow positive, with a neutral effect on Telelogic’s full year results for 2005, and to be EPS positive from full year 2006.
