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September 05, 2007

Strategic Links Help Cognos Buy Applix

Canada’s largest software company, Cognos Inc, has announced that intends to purchase Applix Inc in a deal worth $339 million (see article from Reuters). Cognos has a great deal to gain from this acquisition, so we created an IntellectSpace Knowledge Map of the company’s ties to Applix to determine what relationships may have been present to aid in the formation of this agreement.

The strongest connection that we discovered, as shown in this Knowledge Map, links the companies through Michael A Morrison, the Chief Operating Officer of Applix. Prior to joining Applix in 2004, Morrison had spent more than a decade with Cognos, last serving as its Vice-President of Enterprise Planning Operations. This direct tie would definitely have been useful in facilitating the negotiations.

Another link that may have been influential in sparking a deal is shared between William V Russell (Director at Cognos) and Peter Gyenes (Director at Applix). Russell is the Chairman of webMethods Inc, where Gyenes also serves as a Director. It is not unlikely that the initial discussions of a partnership occurred through this connection. Screenhunter_01_sep_05_0804

A third tie worth noting links John J Rando (Director of Cognos) to Applix’s CEO, David Mahoney. Both past have ties to ePresence Inc, where Mahoney was the Founder and Chairman/CEO from 1983 to 1997. Though Rando joined as a Director in 1999, given Mahoney’s former positions with ePresence, it is likely that the two had crossed paths and been in touch about Cognos’ interest in Applix.

We predict that these relationships will lead to a smooth transition into the acquisition.

Click herer for an interactive version of this IntellectSpace Knowledge Map (Internet Explorer browsers only): http://nv.intellectspace.com/ispace/GuestMonitor.aspx?id=32849d82-f3cb-4ca0-8554-8cd62f2674cc

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» The buying continues…Cognos acquires Applix from Data Doghouse - performance management, business intelligence, and data warehousing
In my last post “The end of Business Intelligence takeovers?” I discussed how MA (mergers and acquisition) activity was alive and kicking. Today, Cognos Inc. (COGN) validated that assertion by announcing its intention to acquire Applix Inc. (APLX) for ... [Read More]

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