FT.com / Companies / Europe - US group might bid for troubled SAP unit

FT.com / Companies / Europe - US group might bid for troubled SAP unit

US group might bid for troubled SAP unit
By Helene Laube in San Francisco

Published: November 22 2007 22:56 | Last updated: November 22 2007 22:56

Rimini Street, a US-based provider of software support, said it was interested in buying TomorrowNow, the SAP unit at the centre of a corporate spying scandal.

“We are interested, but we are proceeding cautiously and need to analyse it first,” Seth Ravin, chief executive of Rimini Street, told FT Deutschland, the FT’s sister paper in an interview.

SAP, the German software group, revealed at the beginning of the week that it was exploring options for the troubled unit, including selling it.

Mr Ravin was among the founders of the Texas-based TomorrowNow and sold the company to SAP almost three years ago.

He declined to say whether talks were going on with SAP.

The scandal surrounding TomorrowNow, which like Rimini Street sells software maintenance and support to former Oracle customers, broke when SAP’s arch-rival filed a lawsuit earlier this year accusing SAP of corporate espionage.

In the wake of the scandal, TomorrowNow’s chief executive and several senior member of management resigned on Monday.

SAP is under pressure to announce a swift solution for TomorrowNow in order to avoid further damage to its image.

The announcement was widely seen as unsettling customers relying on long-term software support.

Since SAP’s announcement, Rimini Street had received a dozen enquiries from TomorrowNow customers “exploring a possible transition”, Mr Ravin said.

Customers were uncertain since SAP had not been clear about “what they are doing with TomorrowNow,” he added.

Rimini Street is seen as one of the few potential buyers for TomorrowNow, as most big IT service provider are working in collaboration with Oracle and are said not to be interested.
Copyright The Financial Times Limited 2007