Hyperion To Acquire BrioHyperion To Acquire Brio

Hyperion Solutions Corp. is acquiring Brio Software Inc., a developer of query-and-reporting applications, in a stock and cash deal valued at $142 million, the two companies said Wednesday.

The buyout is the second major acquisition within a week in the highly fragmented business-intelligence software industry. On Friday, Business Objects SA revealed plans to buy reporting software vendor Crystal Decisions Inc. for $820 million.

The Hyperion-Brio deal is expected to close in the fourth quarter. The acquisition has been approved by both companies' boards of directors, but it requires approval from Brio stockholders and government regulators.

Hyperion says it will add Brio's query-and-reporting capabilities to its own business-intelligence and financial-management software. Hyperion's product line includes the Essbase XTD online analytical processing software. Hyperion resells Crystal Decisions' reporting software, and there has been speculation that Hyperion would move to acquire another reporting software vendor given that Business Objects is a Hyperion competitor.

On Wednesday, Hyperion also reported financial results for its fourth quarter and fiscal year, ended June 30. For the quarter, Hyperion reported a year-over-year 47% gain in net income to $9.2 million (25 cents per share) on a 2% sales increase to $138.0 million. For the year, the vendor reported net income of $34.1 million (96 cents per share), up 127% from 2002, on a 4% revenue increase to $510.5 million.

Brio, which has been struggling lately, reported a loss of $2.1 million (5 cents per share) on sales of $24.8 million for its first quarter, ended June 30.