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Thursday, April 26, 2012

Progress announces to Divest Savvion | Sell Savvion and its many other products

This is in reference to Progress Announcement for their Strategic Plan to Increase Growth, Profitability and Shareholder Value. As the part of the plan, Progress will divest multiple products that are not core to their vision and will launch immediate operational restructuring initiatives to significantly reduce their annual costs.

In short, Progress software is divesting Savvion or selling Savvion as well as many of its other products.

The evaluation was led by Progress President and Chief Executive Officer, Jay Bhatt, who joined Progress in December 2011. Upon joining the Company, Jay Bhatt immediately began the planning process with the Board of Directors, management team and external advisors, including J.P. Morgan.

Bhatt said: “Progress pioneered the creation of application development and deployment infrastructure tools, technology and software. Our new strategic plan is firmly rooted in this foundation and is designed to significantly improve Progress’ growth and performance. With our refined focus on providing advanced, leading-edge application development products and services to customers, we are confident that we will enhance value for all shareholders.”

Bhatt continued: “Over the past five months, members of my executive management team and I met with customers, partners and shareholders, collaborated with employees and worked with the Board of Directors and our independent advisors to determine the best plan for growth and profitability. Valuable analysis, market feedback and lessons learned from previous product strategies helped inform our view and we fully intend to evolve Progress into a leaner company that will help to lead the computing evolution from on-premise to the Cloud. The Board and I are confident that Progress has the right DNA, scale and experience to make this transformation successful for the benefit of all stakeholders,” added Bhatt.

Progress will divest ten non-core product lines: Actional, Artix, DataXtend, FuseSource, ObjectStore, Orbacus, Orbix, Savvion, Shadow and Sonic. According to progress these product are strong and viable, however, they no longer fit into the Company’s core portfolio. Fiscal 2011 revenue for these products totaled $172 million. The Company expects to complete the divestitures by the middle to end of FY 2013. Hence all of this products may not be available to Progress any more by eoy 2013

This will no doubt have an impact to many organizations which uses Savvion for their core business applications and will impact other major initiatives. It is too setback and bad corporate strategy by Progress specially when the acquisition on Savvion was quite recent.

For more information, refer http://www.progress.com/en/inthenews/progress-announces-s-58698.html

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