UPDATE 1-Software AG posts 7 pct rise in Q2 net profit

* Says now owns 58 percent of IDS Scheer

* Net profit up 7 pct at 28.9 mln eur

(adds details, background

FRANKFURT, July 22 (Reuters) - Software AG (SOWG.DE) said it had acquired the majority stake in IT consultancy IDS Scheer and posted a 7 percent rise in second-quarter net profit thanks mainly to an increase in its maintenance business.

The business software group, a distant second to German rival SAP (SAPG.DE), said on Wednesday net income for the quarter was 28.9 million euros ($41 million) on sales of 176.4 million euros, up 5 percent.

Product revenue, which includes licences and maintenance, increased 9 percent to 133.7 million euros.

Earnings before interest and tax (EBIT) rose 8 percent to 44.2 million euros compared with the previous year while its EBIT margin in the quarter increased to 25 percent from 24.3 percent.

Europe's fourth-largest software maker said last week it will buy IDS Scheer for 487 million euros, which it will finance largely with debt.

The business software group's offer worth 15 euros has already been accepted by company founders August-Wilhelm Scheer and Alexander Pocsay, who owned a combined 48 percent of IDS.

Since last week it had purchased a further 10 percent, Software AG said on Wednesday.

The vendor of software used to pay company bills and manage payroll reiterated its growth target could be beaten but added that a forecast would only be possible after the IDS Scheer deal is done -- likely in the third quarter.

Previously, Software AG had set itself 2009 targets of between 4 percent and 8 percent revenue growth and an operating margin of 24.5 to 25.5 percent.

Software AG shares trade at about 11.2 times 12-month forecast earnings according to Thomson Reuters StarMine compared with Logica (LOG.L) and Atos Origin (ATOS.PA), which are valued at 8 and 11.4 times respectively.

StarMine weights analyst estimates according to their track record.

(Reporting by Nicola Leske)