Progress Software explores acquisition of MariaDB

BURLINGTON - Progress Software Corp (NASDAQ: NASDAQ:PRGS), a global provider of application development and digital experience technologies, has publicly expressed interest in acquiring the relational database management company MariaDB plc. The initial announcement was made on March 26, 2024, under the Irish Takeover Panel Act, 1997, Takeover Rules, 2022.

Progress Software, with a history of over 40 years in the industry, is considering the addition of MariaDB to its portfolio to enhance its data management capabilities. According to John Ainsworth, Executive Vice President and General Manager, Application and Data Platform at Progress, MariaDB's open-source relational database management system (RDBMS) aligns with Progress's commitment to providing scalable and reliable solutions with a focus on reducing complexity for their customers.

The potential acquisition is seen as a strategic move by Progress to deepen its data capabilities, especially in the age of artificial intelligence (AI). The company has been expanding its data management products, including the recent addition of the MarkLogic Multi-Model Database and Semaphore to its portfolio. This expansion is part of Progress's strategy to enable customers to leverage AI and manage a variety of data types.

Progress Software emphasizes its long-standing customer relationships and high retention rates as evidence of its commitment to customer success. The company's latest long-term support release, OpenEdge 12.8, is supported until 2030, showcasing its dedication to long-term customer support.

The announcement clarifies that there is no certainty that an offer will be made, nor the terms on which any offer would be made. The board of directors at Progress Software has taken responsibility for the information contained in the announcement, ensuring its accuracy and completeness.

Progress Software's financial advisor, Europa Partners Limited, is acting exclusively for the company in connection with the potential acquisition. Europa Partners is authorized and regulated in the United Kingdom by the Prudential Regulation Authority and the Financial Conduct Authority.

This announcement is based on a press release statement and does not constitute an offer to sell or invitation to purchase any securities. It also does not solicit any vote or approval in any jurisdiction pursuant to the possible offer or otherwise. The release, publication, or distribution of this announcement in certain jurisdictions may be restricted by law.

For further information, interested parties can refer to Progress Software's website, where a copy of this announcement will be made available.

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In light of Progress Software Corp's (NASDAQ: PRGS) interest in acquiring MariaDB, several metrics and tips from InvestingPro provide a deeper understanding of the company's financial health and stock performance. With a strong market capitalization of $2.24 billion, Progress Software shows significant presence in its sector. The company's adjusted price-to-earnings (P/E) ratio for the last twelve months as of Q1 2024 stands at 26.67, indicating investors' valuation of its earnings.

InvestingPro Tips highlight Progress Software's impressive gross profit margins, which reached 85.82% for the last twelve months as of Q1 2024. This figure demonstrates the company's efficiency in managing its cost of goods sold and its ability to retain a substantial portion of revenue as gross profit. Additionally, the company's net income is expected to grow this year, which could be a positive indicator for potential investors considering the impact of the proposed acquisition on the company's financial performance.

Furthermore, Progress Software's shareholder yield is highlighted as high, which is an important consideration for investors looking for returns through dividends and share repurchases. The company's stock also trades with low price volatility, providing a more stable investment option in the technology sector.

InvestingPro offers additional insights and tips for investors, with a total of 9 more tips available for Progress Software. These could be invaluable for those looking to make informed investment decisions, especially in the context of the company's potential expansion through acquisition. Interested readers can find more InvestingPro Tips at https://www.investing.com/pro/PRGS and can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

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