Blog: Andy Hayler Subscribe to this blog's RSS feed!

Andy Hayler

Welcome to my blog!

About the author >

Andy Hayler is one of the world’s foremost experts on master data management. Andy started his career with Esso as a database administrator and, among other things, invented a “decompiler” for ADF, enabling a dramatic improvement in support efforts in this area.  He became the youngest ever IT manager for Esso Exploration before moving to Shell. As Technology Planning Manager of Shell UK he conducted strategy studies that resulted in significant savings for the company.  Andy then became Principal Technology Consultant for Shell international, engaging in significant software evaluation and procurement projects at the enterprise level.  He then set up a global information management consultancy business which he grew from scratch to 300 staff. Andy was architect of a global master data and data warehouse project for Shell downstream which attained USD 140M of annual business benefits. 

Andy founded Kalido, which under his leadership was the fastest growing business intelligence vendor in the world in 2001.  Andy was the only European named in Red Herring’s “Top 10 Innovators of 2002”.  Kalido was a pioneer in modern data warehousing and master data management.

He is now founder and CEO of The Information Difference, a boutique analyst and market research firm, advising corporations, venture capital firms and software companies.   He is a regular keynote speaker at international conferences on master data management, data governance and data quality. He is also a respected restaurant critic and author (www.andyhayler.com).  Andy has an award-winning blog www.andyonsoftware.com.  He can be contacted at Andy.hayler@informationdifference.com.

 

Informatica has made an offer to buy Germany PIM vendor Heiler – the deal has not gone through yet and the German securities laws are complex, but it appears to be a “friendly” takeover. There are a few interesting aspects to this. Firstly, it sets a useful valuation benchmark. Heiler did 17.4 million Euros in revenue in their last financial year, and the offer is 80.8 million, so this is a price to sales ratio of 4.6, a healthy though not extreme valuation (Heiler also has 15.8 million euros of cash and is modestly profitable, with profits in the last financial year of 1.4 million Euros). It had been around in the MDM market for 12 years, and so is quite a mature product/company, shown in the split of its revenue, with nearly half its revenue in services, and a fifth in maintenance revenue, with several hundred customers.

The deal makes sense to Heiler, as Informatica has a far more powerful sales channel. From Informatica’s perspective they gain a solid piece of technology with a proven footprint in the product data domain, whereas Informatica, for all its multi-domain marketing, has been primarily used to managed customer data. They also gain a slice of the European MDM market, reducing their heavy US revenue preponderance. Moreover, assuming the deal goes ahead, Informatica now has several hundred new customers to up-sell its other software to e.g. its integration and data quality offerings.

The deal also shows that the M&A market is still active for MDM software, which is positive news for the shareholders of other independent MDM vendors out there.


Posted October 9, 2012 1:06 PM
Permalink | No Comments |