Borland Software, a vendor of Open Application Lifecycle Management (ALM) solutions, recently announced to sell the assets of its CodeGear division to Embarcadero Technologies, a privately held company of Thoma Cressey Bravo. Expected to close by June 30, 2008, Embarcadero will shed USD 23 million to purchase CodeGear.

The combined companies would operate under the Embarcadero Technologies name, once the acquisition is complete, and is expected to generate annual revenue of more than USD 100 million. Wayne Williams, CEO of Embarcadero, will front the combined business, but CodeGear will remain a unit of Borland Software until the deal is closed. Borland will also retain CodeGear accounts receivables that are estimated to have an approximate value of an additional USD 7 million.

Along with this announcement, Borland also revealed its financial results for the first quarter ended March 31. Borland generated total revenue of USD 58.3 million, GAAP net loss of USD 22.3 million, or USD 0.31 per share, and non-GAAP net loss of USD 4.0 million, or USD 0.05 per share.

GAAP net loss included an impairment charge of USD 13.3 million in CodeGear goodwill, USD 1.6 million in stock-based compensation, USD 2.2 million in amortization of intangible assets, and USD 1.3 million in restructuring expenses.

ALM products and services generated revenue of USD 32.4 million whereas Deployment (DPG) products and services revenue was USD 13.7 million. Revenue generated from CodeGear (IDE) products and services was USD 12.2 million.