Sequoia Software Corp. of Columbia announced yesterday that it has purchased Radian Systems Inc. of Arlington, Va., for an undisclosed amount of stock and cash.
Privately held Sequoia makes Web-based software to manage corporate information using the computer language XML. Radian makes software that converts data into XML.
"Putting the two products together is a powerful solution," said Sequoia Chief Executive Officer Richard C. Faint Jr.
Faint said the companies entered into a business partnership this year and began planning the acquisition in May. In October, Sequoia will release new software, Sequoia XML Portal, that will combine the two companies' products, he said.
Faint said the acquisition also "brings us to the kind of size that will give us the ability to go public." He said the company plans to go public next year, but would not give additional details.
"We are growing very, very rapidly. They were also growing swiftly. We think the two companies combined this year will increase revenue by 200 percent," he said.
Faint declined to disclose financial data.
The acquisition will also enable Sequoia to expand the markets that it has traditionally served. Sequoia has primarily drawn its customers, such as Kaiser Permanente and the Johns Hopkins Health System, from the health care industry. Most of Radian's customers, which include General Electric and Prudential Investments, have been in the manufacturing and financial industries.
"Puting the two companies together, there are five vertical markets we'll be participating in: health care, financial, manufacturing, technology and federal, state and local government," Faint said.
Radian's Chief Executive Officer Kenneth E. Tighe becomes executive vice president of Sequoia.
Sequoia had about 80 employees and Radian had about 40 employees before the acquisition.
Faint said there may be one or two individuals whose jobs were duplicated, but the company does not expect to make any "significant" layoffs. "There was really a good fit," he said.
While most of the company's operations will be moved to Columbia, Faint said the company will maintain a presence in Arlington for those employees who can not relocate.