CodeGear + Embarcadero = True
As I’m sure you’ve seen by now, Borland is selling CodeGear to Embarcadero for $23M in cash. Borland also gets to keep $7M in accounts receivables, so the whole package is about $30M.
We had a very upbeat company meeting today, where a lot of questions were answered, and it was clear that CodeGear’s leadership is very enthusiastic about this deal. There are a lot of synergies, and not a lot of overlap, and as others have said - once the deal closes (in 30-60 days) we can start doing things that none of us could have done on our own before.
Some people have said that $30M is a chump change. Cough - I wish I had chump change in that case. 
One perspective you can put things is in relation to market caps. So, simply for the exercise of my brain, I noticed that the market cap of BORL as of the close today was $110M according to Yahoo Finance. Based on that number, the CodeGear deal valued at $30M would put us at about 27% of the total market cap. Not too bad at all if you think about it.
The future is bright - I’m convinced that all of our products will continue to grow and prosper under the Embarcadero name. Stay tuned for lots of new things over the coming months and years as well.
May 7th, 2008 at 2:00 pm
Makes you wonder if Borland lost out on a higher valuation of the company during the original bidding process.
I guess we’ll never really know. (but I’ll bet there are a number of Borland shareholders that would love to find out!)
May 7th, 2008 at 3:29 pm
Great!!! Embarcadero is a super cool company, their software is extremely complex, unique, true database modeling (I’ve used in Ernst & Young, cap Gemini, for years) and I am super confident that the outstanding Embarcadero upper management and engineering will give Delphi, BCB, JBuilder a true home, finally after all these years!!! So, Great, Congratulations, say hi to everyone from "old" Dan
I am super confident that the unique database skills Embarcadero always invested in their true / real life products (talking specifically about new ErWin) will naturally merge with Delphi, BCB, JBuilder & Interbase. The amount of opportunity (into innovating together, now with true database players) is simply huge. Both embarcadero and Borland (CodeGear related) products are simply the best. What a great mix!
I am so happy for you guys!!! I wish we were there together to share this super cool news (the bast in 12 years, that’s for sure!!!)
Now, the best development tools in the world will get a new life, especially in database area. Super Super Super!!!
Regards,
Daniel
May 7th, 2008 at 4:55 pm
Embarcadero should have spent a little less in CodeGear and a little more in server hardware instead. Their servers are so overloaded at the moment
May 8th, 2008 at 12:51 am
$30 million look cheap because the price paid by Embarcadero is therefore around 50% of 2007 CodeGear yearly revenues. This could be compare for instance with the price paid last year by IBM to acquire Telelogic, which was around 300% of 2007 revenues.
May 8th, 2008 at 4:08 am
Great !!
I used Er-Designer from Embarcadero before 5 years ago, It was a very tuned application, so I wish prosperous delphi era .
May 8th, 2008 at 6:58 am
30 million look cheap when we know that their is 3.2 millions users of codegear ! if each user gave 10 $ = 32 Millions $ …
probably we don’t know everything in this deal
anyway it’s very great than embarcadero and codegear are together now … embarcadero is in any way for codegear 10 times better than borland !
May 9th, 2008 at 4:02 am
Thank heaven Delphi is now out of Borlands hands.
I hope that now Kylix could be revived, even in a limited way,
as although developers may not use it immediately, its presence in
the Delphi profile will instill even more confidence and will be a long term catalist in the expansion of Delphi.