UPDATE 3-Cognos to buy software maker Applix for $339 mln

(Adds analyst comments, updates stocks. In U.S. dollars)

By Susan Taylor

OTTAWA, Sept 5 (Reuters) - Cognos Inc. CSN.TO COGN.O, Canada's biggest software company, said on Wednesday it plans to buy U.S.-based Applix Inc. APLX.O for $339 million in cash to gain a bigger piece of the financial performance management market.

Cognos, which makes software that helps companies sift through data to find trends, said the offer of $17.87 per share is worth $306 million, excluding Applix's cash on hand.

It is a 24 percent premium to the closing price of Applix stock on Tuesday, causing some analysts to ask if the purchase of the analytics software maker is too pricey.

After the deal was announced, Applix stock rose 22 percent to $17.55, while Cognos shares dipped 1.5 percent to $40.47.

"Financial performance management is fundamental and foundational to what we do," Cognos Chief Executive Rob Ashe told Reuters in an interview.

"We expanded into financial performance management probably about 6 years ago, as part of our strategy at the time to go from business intelligence -- where we manage performance in operations -- to financial performance management -- where we manage performance in finance."

The global market for business management and financial analysis software is estimated at $8 billion to $10 billion annually, with growth in the low-teen percentage basis, Ashe said.