BEA bought Fuego for $87.5 million, almost 6-8 times Fuego's last year revenues which were in the $11-$14 million range. What does that say about the valuation of other BPM vendors? How about Ultimus - as per Deloitte and Touche Technology Fast 500, Ultimus had revenues of over $18 million in 2004. Given their excellent growth rate, they must have done anywhere between $30-$35 million in 2005. So are we looking at a possible $200 million plus buyout for Ultimus? I'm sure Rashid must be running these figures in his mind right now :-)
As BPM becomes more mainstream, a consolidation is bound to occur and some of these companies make excellent targets for big players like Microsoft and others who are still rounding up their portfolios.