By editorial@silicon.com, 8 October 1998 17:50
NEWS Informix is to buy datawarehousing vendor, Red Brick Systems, for $35m in stock. The deal will add to the database giant's datawarehousing product portfolio. Bob Finocchio, Informix CEO and president, said the deal will help the company provide "the most comprehensive datawarehousing solutions in the industry". Terry Lawlor, UK marketing manager for Informix, said: "There are a lot of synergies between the two companies: we have complimentary high-end technologies." He said Informix will continue to sell and support Red Brick products until the two companies are fully merged. Red Brick's technology will then be integrated into Informix's Decision Frontier suite, which launches this month. Red Brick has had a troubled year, recording a $6.1m net loss for the second quarter of 1998, and its shares - which once sold for over $30 - had fallen to $2. Lawlor said: "It is a good time to buy," adding: "Redbrick has a proven reputation in the market." Lawlor would not be drawn on the possibility of redundancies, but admitted: "There will be some overlap." Informix will exchange 0.6 shares of common stock for each Redbrick share. The deal is expected to be completed by the end of the year, but is subject to approval by regulators and Red Brick shareholders.
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