Sterling Software
Encyclopedia
Sterling Software was an American software company
founded in Dallas, Texas
in 1981 by Sterling Williams and brothers Sam
and Charles Wyly. The company was acquired by Computer Associates International in 2000 in a stock-for-stock transaction worth $3.3 billion.
Computer Associates sold Sterling Software's Federal Systems Group to Northrop Grumman in 2000.
It was known for its aggressive acquisitions, most notably the hostile take-over of Informatics General Corporation in 1985.
Informatics was one of the first established software and services companies. It developed the MARK-IV Fourth-generation programming language
in the 1960s. MARK-IV became the first software package exceeding $1 million in revenue, after IBM was forced in 1969 to unbundle software from their hardware.
Helped by financing and counseled by Werner Frank, one of Informatics' founders who had left this company a year before, Sterling Software started the hostile take over by offering to shareholders an interesting price per share and increasing it slowly until the Informatics board was no longer able to reject it.
Overnight, Sterling Software became a $200 million in revenue company up from $20 million.
After only 2 years, they started again acquiring new companies.
Acquired Reston, VA
-based Systems Center, Inc. in 1993 in a stock-for stock transaction worth $185 million, Sterling Software's 20th acquisition. In the process of this acquisition, Sterling Software was completely restructured along lines of business, as opposed to the previous practice of absorbing acquired companies as essentially equivalent divisions.
Acquired Atlanta
-based KnowledgeWare
in a stock-for-stock transaction worth $74 million in 1994, in the process eliminating about 250 jobs in the combined companies. KnowlegeWare's founder Fran Tarkenton
joined the Sterling Software board of directors as part of the deal.
Acquired Texas Instruments
's Dallas-based software division (known as TI Software) for $165 million cash in 1997, about 66% of its previous year's revenue. The acquisition included the rights to Information Engineering Facility.
Acquired Boston-based Cayenne Software for $11.4 million in cash in 1998, Sterling Software's 30th acquisition.
Acquired Fremont, California
-based Interlink Computer Sciences
in 1999 for $64 million in cash, merging Interlink into Sterling's existing Network Management Division.
Software industry
The software industry includes businesses involved in the development, maintenance and publication of computer software using any business model...
founded in Dallas, Texas
Dallas, Texas
Dallas is the third-largest city in Texas and the ninth-largest in the United States. The Dallas-Fort Worth Metroplex is the largest metropolitan area in the South and fourth-largest metropolitan area in the United States...
in 1981 by Sterling Williams and brothers Sam
Sam Wyly
Samuel "Sam" Wyly is an American entrepreneur and businessman, philanthropist, and major contributor to conservative campaigns and candidates. In 2006, Forbes magazine estimated his net worth at $1.1 billion...
and Charles Wyly. The company was acquired by Computer Associates International in 2000 in a stock-for-stock transaction worth $3.3 billion.
Computer Associates sold Sterling Software's Federal Systems Group to Northrop Grumman in 2000.
It was known for its aggressive acquisitions, most notably the hostile take-over of Informatics General Corporation in 1985.
Informatics was one of the first established software and services companies. It developed the MARK-IV Fourth-generation programming language
Fourth-generation programming language
A fourth-generation programming language is a programming language or programming environment designed with a specific purpose in mind, such as the development of commercial business software. In the history of computer science, the 4GL followed the 3GL in an upward trend toward higher...
in the 1960s. MARK-IV became the first software package exceeding $1 million in revenue, after IBM was forced in 1969 to unbundle software from their hardware.
Helped by financing and counseled by Werner Frank, one of Informatics' founders who had left this company a year before, Sterling Software started the hostile take over by offering to shareholders an interesting price per share and increasing it slowly until the Informatics board was no longer able to reject it.
Overnight, Sterling Software became a $200 million in revenue company up from $20 million.
After only 2 years, they started again acquiring new companies.
Acquired Reston, VA
Reston, Virginia
Reston is a census-designated place in Fairfax County, Virginia, United States, within the Washington, D.C. metropolitan area. The population was 58,404, at the 2010 Census and 56,407 at the 2000 census...
-based Systems Center, Inc. in 1993 in a stock-for stock transaction worth $185 million, Sterling Software's 20th acquisition. In the process of this acquisition, Sterling Software was completely restructured along lines of business, as opposed to the previous practice of absorbing acquired companies as essentially equivalent divisions.
Acquired Atlanta
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
-based KnowledgeWare
KnowledgeWare
KnowledgeWare was a software company headquartered in Atlanta, Georgia co-founded by James Martin and run by Fran Tarkenton. It produced a Computer Aided Software Engineering tool called IEW...
in a stock-for-stock transaction worth $74 million in 1994, in the process eliminating about 250 jobs in the combined companies. KnowlegeWare's founder Fran Tarkenton
Fran Tarkenton
Francis Asbury "Fran" Tarkenton is a former professional football player, TV personality, and computer software executive....
joined the Sterling Software board of directors as part of the deal.
Acquired Texas Instruments
Texas Instruments
Texas Instruments Inc. , widely known as TI, is an American company based in Dallas, Texas, United States, which develops and commercializes semiconductor and computer technology...
's Dallas-based software division (known as TI Software) for $165 million cash in 1997, about 66% of its previous year's revenue. The acquisition included the rights to Information Engineering Facility.
Acquired Boston-based Cayenne Software for $11.4 million in cash in 1998, Sterling Software's 30th acquisition.
Acquired Fremont, California
Fremont, California
Fremont is a city in Alameda County, California. It was incorporated on January 23, 1956, from the merger of five smaller communities: Centerville, Niles, Irvington, Mission San Jose, and Warm Springs...
-based Interlink Computer Sciences
Interlink Computer Sciences
Interlink Computer Sciences, of Fremont, California, was a developer of hardware and software that allowed IBM mainframe computers running the MVS operating system to be connected to non-IBM networks....
in 1999 for $64 million in cash, merging Interlink into Sterling's existing Network Management Division.
External links
- Oral history interview with Sam Wyly. Charles Babbage InstituteCharles Babbage InstituteThe Charles Babbage Institute is a research center at the University of Minnesota specializing in the history of information technology, particularly the history since 1935 of digital computing, programming/software, and computer networking....
, University of Minnesota. Interview by David Allison, 6 December 2002, focuses on ongoing developments at University Computer CorporationUccelUCCEL Corp, previously called University Computing Company was a data processing service bureau on the campus of Southern Methodist University in Dallas, Texas. It was founded by the Wyly brothers in 1963...
, the eventual sale of this firm to Computer Associates, Wyly's formation of Sterling Software, its acquisition of Informatics, the sale of Sterling, and his ideas on the future of information technology. - Going in for the CA kill - interview with Sam Wyly.
- Biography of Sam Wyly