Informix Announces Definitive Agreement to Acquire Red Brick
MENLO PARK, Calif., Oct. 7 /PRNewswire/ -- Informix Corporation
(Nasdaq: IFMX), the technology leader in enterprise database-powered
solutions, today announced the signing of a definitive agreement to acquire
Red Brick(R) Systems, Inc.(Nasdaq: REDB), The Data Warehouse Company(R).
Today's agreement anticipates combining two companies that share a common
corporate vision of providing open end-to-end solutions for customers'
decision support needs and a culture of technical innovation that solves the
most complex data warehousing problems. The complementary strengths of
Informix and Red Brick will provide customers with industry leading decision
support solutions to gain maximum competitive advantage.
Under the terms of the agreement, each share of Red Brick common stock
will be exchanged for 0.6 share of Informix common stock. The transaction will
be accounted for as a purchase. Based on the closing sales price of Informix
common stock on Wednesday, October 7, the number of outstanding shares of
Red Brick common stock and the number of Red Brick options assumed by
Informix, the transaction is valued at approximately $35 million. The
transaction is expected to close before the end of the year and is subject to
the satisfaction of several conditions, including regulatory approval, the
approval of Red Brick stockholders and completion of an independent audit of
Red Brick's financial results for the first three quarters of 1998.
Informix intends to sell and support the Red Brick product portfolio and
to integrate this portfolio into the Informix Decision Frontier product line
following the purchase.
"We intend to offer the market the most comprehensive data warehousing
solutions in the industry," said Bob Finocchio, Informix CEO and president.
"Through this acquisition of Red Brick, we are combining the most powerful
data mart and data warehousing technology and consulting expertise,
outstanding partnerships and expert distribution channels into one company
focused on our customers' success."
"The combined strength of Red Brick and Informix will benefit our
customers, partners and stockholders," commented Christopher Erickson, CEO and
president of Red Brick. "Red Brick's proven scalable data mart products,
technology, and solutions expertise enhance Informix's data warehousing
strategy. Together with Informix, our greater resources promise to protect
customer investment and deliver the leading complete solution for the data
warehousing market."
When the purchase is complete, Red Brick research and development,
marketing and data warehouse consulting organizations will be folded into the
Informix Data Warehousing Division, managed by Leonard Palomino, vice
president and general manager. The Red Brick customer support organization
will be integrated with the Informix customer support organization, Red Brick
general and administrative will be integrated into the appropriate Informix
organizations and the Red Brick sales force will move into the Informix sales
organization.
This announcement is the most recent of several decisive steps Informix
has taken in executing its core growth strategy to build leadership in data
warehousing, high-performance OLTP and Web/E-Commerce.
About Informix
Informix Corporation, the world's database technology leader based in
Menlo Park, California, provides innovative database products that assist the
world's major corporations attain competitive advantage. Informix is widely
recognized as the technology leader for corporate computing environments
ranging from small workgroups to very large parallel processing applications.
Informix's database server, application development tools, superior customer
service, and strong partnerships enable the company to be at the forefront of
major information technology solution areas including data warehousing, high
performance OLTP, and Web/E-Commerce. For more information, contact the sales
office nearest you or visit our Web site at http://www.informix.com.
About Red Brick
Red Brick is a premier provider of data warehousing solutions. Through Red
Brick DecisionScape(SM), a comprehensive, integrated environment of products,
services, methodology and partnerships, Red Brick helps its customers and
partners improve the quality, speed and accuracy of their business
decision-making. Red Brick's leading expertise and innovative,
server-integrated technology deliver scalable decision support solutions for
data warehousing, data marts, OLAP and data mining.
NOTE: The following are trademarks of Informix Corporation or its
affiliates: Informix(R), the Informix logo is registered with the United
States Patent and Trademark Office.
Information about Red Brick is available on the World Wide Web at
http://www.redbrick.com. News releases and corporate background information may also
be retrieved by fax. For an index of available materials, please call
800 758-5804, and enter PIN #105756. Red Brick, the Red Brick logo, and The
Data Warehouse Company are registered trademarks, and Red Brick DecisionScape
is a service mark and trademark of Red Brick Systems, Inc. All other
trademarks are the property of their respective owners.
This public announcement contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from historical results or anticipated
results. Investors and potential investors should review carefully the
description of the risks and uncertainties which, together with other detailed
information about Informix Corporation, is contained in the periodic reports
that Informix files from time to time with the Securities and Exchange
Commission.
The risks and uncertainties include, but are not limited to: the ability
to successfully integrate the Company's and Red Brick's operations; the
restatements of the Company's financial statements; growth rates, fluctuations
in quarterly results and the seasonality of the Company's business; the
Company's dependence upon and ability to attract and retain qualified
personnel; risks and uncertainties associated with preferred stock financings;
competition and technological changes in the Company's business; international
operations and currency fluctuations; the Company's dependence upon
proprietary technology; the potential need for additional financing; and
pending private securities litigation.
This public announcement contains information that is accurate as of
October 7, 1998, the date of the public announcement. The Company disclaims
any obligation to update or correct the information as a result of financial,
business or any other developments occurring after October 7, 1998.
SOURCE Red Brick Systems, Inc.
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Related links:
http://www.redbrick.com
Company News On-Call:
http://www.prnewswire.com/comp/105756.html or fax,
800-758-5804, ext. 105756
CONTACT:
Julie McHenry, 650-638-3400, or
jmchenry@wmc.com, or Wendy Barbour, 650-638-3400, or
wbarbour@wmc.com, both of Wilson McHenry Company, for Informix
Software, Inc.; analysts, Kate Patterson of Informix Software,
Inc., 650-926-6809, or katep@informix.com; or Carolyn Hughes,
408-399-7216, or chughes@redbrick.com, or analysts, Rebecca Kreps
408-399-7824, or rkreps@redbrick.com, both of Red Brick Systems,
Inc.
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