You know, if you want to bury some news, make sure to announce it between Xmas and New Years. So SirsiDynix says “investment partnership” in the article headline (their pdf) but “acquisition” in the article. Vista hasn’t announced it at all as of this typing. Press releases are usually vapid and devoid of content and this one is no different. The letter from Sirsi-Dynix CEO is also not really forthcoming. “The partnership validates the contributions libraries and SirsiDynix make to our communities.” What? Dan Scott has some analysis on his blog, Coffee|Code and makes a few predictions.
You heard it here first: expect lots of news from SirsiDynix in 2007. I’m predicting more service fees (100% confidence), increased annual support fees (100% confidence), and the beginning of the end of Unicorn with an announcement that Horizon is the strategic product for new development efforts going forward (75% confidence). I’ll go out on a limb and say that a merger or acquisition of SirsiDynix in 2007 is unlikely (33% confidence), but after proving their new business strategy and the nice spikes on their revenue and profit charts, I’ll say that it’s quite likely in 2008 (80% confidence).
I’m not into the industry enough to make any predictions or even any observations, but it seems to me that if a non-library company sees fit to buy a library services company it’s probably because that company is making money hand over fist. And if Sirsi-Dynix is making money hand over fist, it’s because libraries are paying them boatloads of money. Sirsi-Dynix says they expect no staffing changes. A little more over at Library Journal.
Don’t miss this amazing graphic showing “the history of mergers and acquisitions in the library automation industry” over at Library Technology Guides.