With 47.68% of the company already pledged to it by its two founders, Software AG says it intends to tender for the rest of German-based IDS Scheer AG and create a global vendor of infrastructure software and Business Process Management (BPM) that has more than 6,000 employees and upwards of $1.4 billion in sales.

It is offering roughly $21 (€15) in cash a share or close to $675 million, a 39% premium that seems to be regarded as a depressed price. Apparently the 25-year-old IDS has been at a loss to boost profitability.

Software AG says it’s already signed a deal with IDS co-founders August-Wilhelm Scheer and Alexander Pocsay for their 15.3 million shares.

IDS has skills in analyzing and mapping business processes, a strong partner network, a large service presence and approximately 7,500 customers. It offers expertise in vertical industries, direct access to vertical markets and a strong position in the SAP consulting business.

Software AG, Germany’s second-largest software maker, claims their combined product portfolios will be “unique” and give it a stronger, sustainable competitive position in a consolidating software market.

It describes the strategy as “clearly growth-oriented,” meant to increase sales of both product lines and exploit the specialist expertise of IDS’ consultancy business. It says, “This consulting expertise is of use for the customer-specific implementation of Service-Oriented Architectures (SOA) and BPM/BPA solutions, particularly in SAP environments.”