In yet another acquisition coming to the System i world in recent months, Rocket Software has taken the first step toward acquiring Seagull Software. Both companies announced yesterday that they have signed a letter of intent for Rocket to make a public offer to acquire 100 percent of the shares and outstanding stock options of Seagull Holding N.V., the parent company of all Seagull Software entities.

Seagull Software’s holding company shares are publicly traded on the Euronext stock exchange in Amsterdam. The company has 170 employees across its corporate offices in the Netherlands and United States and its subsidiaries in Canada, the United Kingdom, France, and Germany.

Rocket hopes to complete the acquisition in the first quarter of 2007, but the letter of intent also includes customary binding provisions relating to costs, confidentiality, exclusivity, competing offers, break-up fees, and standstill. Plus, the acquisition is subject to certain requirements including due diligence, execution of a mutually acceptable definitive purchase agreement, approval of financing by Rocket's financing institutions, and approval by the Supervisory Board of Seagull Holding N.V.

The Newton, Massachusetts-based, Rocket Software is a privately held company with more than 350 employees across its operations in the United States, Europe, and Asia. Consistently profitable since its founding in 1990, Rocket has a history of acquisitions. Many of the company’s products are licensed on an OEM basis and sold under global brand names that include IBM, Microsoft, RSA, EMC, Motorola, Lucent, and HP.

“Our strategy is to strengthen and expand Rocket's core OEM-focused business through acquisitions, and the acquisition of Seagull Software would give us the ability to leverage Seagull Software's considerable customer base and presence in the SOA, legacy integration, and Web services software market,” says Andy Youniss, CEO of Rocket Software. “The two companies are a perfect match, and we are very excited about the technology, talent, and customer relationships that Seagull Software would bring to Rocket Software.”