Embarcadero and CodeGear: Such a bargain!

The surprising aspect of Embarcadero’s purchase of CodeGear from Borland is the low, low price tag: US$23 million. As Borland put it yesterday:

Borland announced today a definitive agreement to sell the assets of its individual developer tools unit, CodeGear, to Embarcadero Technologies. The purchase price for CodeGear is expected to be approximately $23 million. Borland will also retain CodeGear’s accounts receivables with an approximate value of an additional $7 million.

That’s an incredible price, given the large number of users for products like JBuilder and Delphi, and the powerful brand equity in those products (though admittedly, not in the CodeGear name).

From this, one may draw several possible conclusions:

1. The CodeGear business wasn’t doing very well.

2. Borland was desperate to sell, and took the first offer.

3. Embarcadero has some world-class negotiators.