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UPDATE: Aprimo will stay put after $525M acquisition

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Marketing software company Aprimo Inc. will stay in Indianapolis after being sold for $525 million to Dayton, Ohio-based based data storage giant Teradata Corp., Aprimo’s CEO said Wednesday.

“The Aprimo headquarters will remain in Indianapolis, and we will be looking to expand our applications business in both Indianapolis and globally once the deal has closed,” Bill Godfrey, president and CEO of Aprimo, said in a statement.

Godfrey, who could not be reached for comment, will lead Teradata’s applications business.

It’s not clear how many of Aprimo’s nearly 400 employees—250 of them at its East 96th Street headquarters—will lose their jobs as certain functions are consolidated with Teradata, however.

Aprimo officials deferred questions to Teradata, which could not be reached for comment.

Teradata has about 6,000 employees worldwide and had 2009 sales of $1.17 billion.

The deal announced Wednesday morning ends the independent run of Aprimo, co-founded by Godfrey 12 years ago and now posting annual sales of more than $70 million.

Just two years ago, Aprimo shelved plans for a $50 million initial public stock offering amid a deteriorating economy. Even so, the company’s annual revenue has been growing at double-digit rates.

Sales among recurring customers, such as Bank of America and Warner Brothers, grew at a torrid 29 percent last year, the company told IBJ last March.

The deal is bittersweet for Indianapolis, home to a number of burgeoning technology companies. But many are snapped up after reaching a large scale. Call center software firm Software Artistry, for example, was acquired by IBM for $200 million in 1997.

The city has but one locally based technology firm that’s publicly traded—Interactive Intelligence.

On the other hand, Aprimo appears to have fetched a rich price, with the $525 million topping the $480 million IBM paid this summer for big Aprimo competitor Unica Corp., a Waltham, Mass.-based company with 500 employees.

Many analysts in August speculated Aprimo would be the next to be acquired, with its rival now backed by deep pockets.

Venture capital firms, including local Blue Chip Venture Co., own much of Aprimo.

“We are delighted,” said Don Aquilano, managing partner of Blue Chip and of Allos Ventures.  “There are very few venture-backed acquisitions of this magnitude. … This really sort of stands out as one of the larger acquisitions certainly in the Midwest, if not in the country.”

Aquilano said the $525 million purchase price is a testament to Aprimo’s management team. “They’ve grown this business through two recessions,” he said.

Teradata’s price for Aprimo reflects what the Ohio company sees as a good complement to its other big business segment: business analytics.

Aprimo’s focus is cloud-based business-to-business and business-to-consumer marketing applications. It claims to have 36 percent of the Fortune 100 companies as clients.

Publicly traded Teradata last month reported third-quarter sales of $489 million, up 15 percent from the period in 2009.

Still, some may lament the loss of independence of another local tech firm.

Aquilano said such acquisitions historically have served to stimulate development of new companies here. He points to Aprimo CEO Godfrey, who formed the company after a prior stint at Software Artistry. Others, such as Software Artistry co-founder Scott Webber, went on to help start additional companies here, the latest being BidPal, which created a mobile phone device for auctions.

Perhaps the most prolific tech executive locally is Scott A. Jones, who sold a number of companies he created, including Escient and Gracenote. Jones has gone on to create other local tech firms, including ChaCha Search and Precise Path Robotics.

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  • So....
    ...how far can one go without VC money and retain control over a company?

    The missus wants me to shoestring/bootstrap a company without signing away a first-born; actually, it'll be two, one will need the other. They could be combined, but it'll be easier to split them.

    It's not as if I'm going to pull up the tent stakes and fold up the tent and head for parts unknown.

    Twenty-four years ago, she asked for a "verbal prenup" to stay within a reasonable driving distance. Because of my relationship with them (without her), I really have no interest in moving away from them, either.

    Seed money? Not bucks. Books. I have 10k-12k books boxed away, headed to Half-Price when I'm able to make time.

    But the best part is I can do a lot of preliminary work without spending money.

    We've arranged finances so we can live off my wife's salary. I have an agent working to sell a couple of ads and will be seeking one for TV-specific spec scripts written. (not to mention the (reputable) contests for such things. I can produce nearly a dozen (new) shoes and almost that many scripts for existing shows.

    And I'm not waiting until the next Startup Weekend, which is preliminarily scheduled for April. I've been sitting on this for almost two years and will hate for someone else to make a go of it.

    Dane

    p.s.

    Everyone is well-aware of beer & napkin meetings. I can top that. Try heading to Bravo!, where they have cloth tablecloths. But it's what is on top of them which makes them so valuable: 3.5' x 3.5' pieces of butcher paper, which are conducive to writing things out. When ready to leave, clear the table, roll up the paper, and take it away.

    Paper vs. napkin? Priceless.

  • Come on, man.
    Aprimo isn't going anywhere and, in fact, is growing by 200 employees as a result of the acquisition. TDC's application group is being rolled into Aprimo and no jobs are going away. Sorry to disappoint you, Mudd.
  • Another company lost
    Time for Frazier Technology Ventures, Blue Chip Venture Company and Sigma Partners to ring the register. So long Aprimo, it was good to know you. Everyone hopes that Teradata will not drive you into nonexistence like Software Artistry was "disappeared" by IBM/Tivoli/Peregrine Systems.

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  1. Socialized medicine works great for white people in Scandanavia. It works well in Costa Rica for a population that is partly white and partly mestizo. I don't really see Obamacare as something aimed against whites. I think that is a Republican canard designed to elicit support from white people for republican candidates who don't care about them any more than democrats care about the non-whites they pander to with their phony maneuvers. But what is different between Costa Rica nd the Scandanavian nations on one hand and the US on the other? SIZE. Maybe the US is just too damn big. Maybe it just needs to be divided into smaller self governing pieces like when the old Holy Roman Empire was dismantled. Maybe we are always trying the same set of solutions for different kinds of people as if we were all the same. Oh-- I know-- that is liberal dogma, that we are all the same. Which is the most idiotic American notion going right back to the propaganda of 1776. All men are different and their differences are myriad and that which is different is not equal. The state which pretends men are all the same is going to force men to be the same. That is what America does here, that is what we do in our stupid overseas wars, that is how we destroy true diversity and true difference, and we are all as different groups of folks, feeling the pains of how capitalism is grinding us down into equally insignificant proletarian microconsumers with no other identity whether we like it or not. And the Marxists had this much right about the War of Independence: it was fundamentally a war of capitalist against feudal systems. America has been about big money since day one and whatever gets in the way is crushed. Health care is just another market and Obamacare, to the extent that it Rationalizes and makes more uniform a market which should actually be really different in nature and delivery from place to place-- well that will serve the interests of the biggest capitalist stakeholders in health care which is not Walmart for Gosh Sakes it is the INSURANCE INDUSTRY. CUI BONO Obamacare? The insurance industry. So republicans drop the delusion pro capitalist scales from your eyes this has almost nothing to do with race or "socialism" it has to do mostly with what the INSURANCE INDUSTRY wants to have happen in order to make their lives and profits easier.

  2. Read the article - the reason they can't justify staying is they have too many medicare/medicaid patients and the re-imbursements for transporting these patient is so low.

  3. I would not vote for Bayh if he did run. I also wouldn't vote for Pence. My guess is that Bayh does not have the stomach to oppose persons on the far left or far right. Also, outside of capitalizing on his time as U. S. Senator (and his wife's time as a board member to several companies) I don't know if he is willing to fight for anything. If people who claim to be in the middle walk away from fights with the right and left wing, what are we left with? Extremes. It's probably best for Bayh if he does not have the stomach for the fight but the result is no middle ground.

  4. JK - I meant that the results don't ring true. I also questioned the 10-year-old study because so much in the "health care system" has changed since the study was made. Moreover, it was hard to get to any overall conclusion or observation with the article. But....don't be defensive given my comments; I still think you do the best job of any journalist in the area shedding light and insight on important health care issues.

  5. Probably a good idea he doesn't run. I for one do not want someone who lives in VIRGINIA to be the governor. He gave it some thought, but he likes Virginia too much. What a name I cannot say on this site! The way these people think and operate amuses me.

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