« Not as good as you think | Main | Never thought we'd see it »

Get 'em while they are hot

Another BI consolidation is in the works with Hyperion buying Brio. From ARCwire:

The acquisition of the query-and-reporting applications developer is a stock and cash deal valued at $142 million. It is expected to close in the fourth quarter of 2003.

The buyout is the second major acquisition within a week in the highly fragmented business-intelligence software industry. Last Friday, Business Objects SA nounced it is buying software vendor Crystal Decisions for $820 million.

The Hyperion deal will add Brio's query-and-reporting capabilities to its own business-intelligence and financial-management software. Hyperion's product line includes the Essbase XTD on-line analytical processing software. Hyperion resells Crystal Decisions' reporting software.

There has been speculation that Hyperion would move to acquire another reporting software vendor given that Business Objects is a Hyperion competitor.

Like the Business Objects purchase of Crystal, this looks like a good move. The price looks reasonable (Brio does about $25M in revenue a quarter, although they haven't been making money recently) and the products should fit together nicely. So, what is Cognos going to do now that their rivals have made a move?