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Software AG CFO says won't buy Iona Technologies
June 4, 2008 / 11:17 AM / 9 years ago

Software AG CFO says won't buy Iona Technologies

FRANKFURT, June 4 (Reuters) - Germany’s Software AG SOWG.DE will not buy loss-making Irish software maker Iona Technologies IONA.OIONA.I, Software’s Chief Financial Officer Arnd Zinnhardt told Reuters on Wednesday.

“We will not buy them,” Zinnhardt said on the fringes of an investment conference in Frankfurt. “Why should we?” he added, saying that the only part of Iona where sales were growing made no profit.

Britain’s Sunday Times had reported that Iona’s advisers had drawn up a shortlist of bidders led by Software AG, Germany’s second-biggest software company after SAP (SAPG.DE).

Zinnhardt added that Software AG saw no reason to change its full-year forecast, after the head of its webMethods division, which represents most of its U.S. business, left in April.

“It’s more likely that things will improve than that they’ll get worse,” Zinnhardt said. “I see no reason why we should revise our forecasts.”

Software AG missed market expectations for first-quarter licence sales and said its acquisition of U.S. peer webMethods last year had not produced the sales growth it expected.

The company has targeted a 24-27 percent increase in licence sales for the full year, adjusted for currency effects.

Reporting by Georgina Prodhan

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