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event-bea-buys-tuxedo

CREATED BY chris • LAST EDITED BY chris 8259 days AGO

Business 2.0: "Novell, however, wasn't as eager to part with Tuxedo as [BEA's Bill Coleman] was to buy it. But Coleman was undaunted: He noted that Novell not only sold the software but also licensed it to individual distributors. And he realized that Novell's sales methods were angled toward out-of-the-box sales instead of service-intensive installations. So BEA raised $50 million from E.M. Warburg, Pincus in [create 1995-06] and purchased the two largest independent distributors of Tuxedo [[create IMC] and [create ITI]]. Then, by offering superior installation service, BEA outsold Novell on its own product. Rather than engage in the messy and awkward business of going to war with one of its own best distributors, Novell relented and sold Tuxedo to BEA for what, at the time, must have seemed like a ridiculously inflated price: $92 million."