Progress Software agrees to buy Iona

Progress Software Corp. said today that it has agreed to buy Ireland-based Iona Technologies Plc for about $148.4 million

Progress Software of Bedford is a maker of tools for integrating different software programs.

In outlining the sales agreement, Progress said it will pay $4.05 per share for the Dublin maker of software integration technology. The offer represents a premium of 13 percent over Iona's closing price of $3.60 yesterday.

Iona had put itself up for sale in February after a period of steady sales decline, particularly to banks, its largest customer segment.

The price projects to a total value of $148.4 million, based on the 36.6 million shares Iona had outstanding at the end of March. Progress said the deal has an equity value of $162 million and is worth $106 million net of cash and marketable securities that Iona held as of March 31.

Iona's board has approved the deal, which the companies expect to close in September. (AP)