SAP Buys Software Development FirmSaturday, April 22, 2006
SAP said it bought VIRSA Systems, which is provider of Software for governance, risk, and compliance management, with the latest acquisition trend among larger business software development organizations underscoring compliance software as the solution provider. At company’s customer conference the financial details of the deal revealed but not disclosed. By the end of May month the acquisition of the Fremont, California based organizations is expected to complete
At Oracle the general partner and former president and chief operating officer is on the board of directors with Virsa. Early this year, organization’s run rate was about 100 million dollar according to Chief Executive Officer. It became partner of SAP in year 2001 and it had joint sales, marketing, and product development agreement since year 2005. Offshore based SAP has been reselling flagship product of Virsa with Compliance Calibrator by add on to firm’s resource planning of Software Outsourcing.
VIRSA’s software development helps organizations automate control design & testing as well as governance enforcing, risk & compliance mgmt solutions in their processes of business to adhere to regulations likes Sarbanes-Oxley, Basel 2 and HIPAA. Found in year 1996 as a software consulting organization, it was later funded by Byers and Kleiner Perkins Caufield, and SAP Ventures by receiving 16 million dollar in 4 funding rounds.
Software Development consulting
This is a dream come true for partners of SAP Company, analyst with Enterprise Software Development Consulting is an unusually close partnership with an unusual synergy. Since firm started selling the product of VIRSA before one year, the number of clients increased to 400 from 190. The later one is third party Software Development for Net-Weaver platform of SAP that is a technological foundation connecting data to its different software applications.
This is what dubs as a genesis of technology playing a strong role in compliance, now with this acquisition; SAP is targeting a governance, risk, and compliance software development market worth about 27 billion dollar by year 2007. As part of the acquisition, most or all 250 workers of VIRSA’s will become a part of SAP; it will continue to expand business of governance, risk, and compliance as an employee. The company has led the software outsourcing since its beginnings in year 1996 and managed to keep it profitable from the starting.