German software vendor Software AG is buying back its main US distributor in a US$360 million deal. Software AG will pay $11.50 in cash for each outstanding share of Saga Systems, which services some 1,500 customers in North America as well as clients in South America, Israel, and Japan.
Saga, originally a wholly owned subsidiary of Software AG, was spun off in April 1997, when it was sold for a sum estimated at the time at $150 million. It changed its name to Saga in May 1999 to avoid confusion with its former parent company.
Software AG said that following the reacquisition, North American operations will account for some 40 per cent of its worldwide license and maintenance revenue.