Cognos plans performance management acquisition

Seeking to expand its corporate performance management (CPM) offering, Cognos Inc., of Ottawa, Ontario, said it plans to acquire a European provider.

Cognos has offered $52.4 million for all outstanding shares of Stockholm-based Frango AB. Frango's board of directors has recommended that Frango's shareholders accept the offer. The deal is expected to be completed Oct. 1.

For more information Read about Cognos' latest software release Check out our learning guide to business intelligence leaders

In a conference call Tuesday, Rob Ashe, president and CEO of Cognos, said the combination of the two companies will "ensure our customers have access to comprehensive CPM and support, and will advance our position."

Frango, which specializes in financial consolidation and reporting, rounds out Cognos' existing offering of reporting and scorecarding, said Paul Hamerman, research director at Cambridge, Mass.-based Forrester Research Inc.

"It's a great strategic move for them," Hamerman said. "It fills a gap in their overall product offering related to financial planning and reporting."

While Cognos already has a financial consolidation offering, this move should help it compete with Hyperion Solutions Corp., Hamerman said.

Frango has more than 1,300 customers and 230 employees in 16 countries.

Cognos is making the purchase based on Frango's sophisticated functionality, adaptability and its appeal to IT while being deployed to finance, Ashe said.