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Pegasystems to Acquire Chordiant Software
16 March 2010Pegasystems (BPO) are to make a cash tender offer at $5.00 per share to Chordiant (CRM)
Pegasystems Inc.business process management (BPM) software solutions, and Chordiant Software, provider of customer relationship management (CRM) software and services, today announced they have entered into a definitive agreement for Pegasystems to acquire Chordiant. Under the terms of the agreement, Pegasystems will make a cash tender offer of $5.00 per share for all outstanding shares of Chordiant common stock, for a total purchase price of up to approximately $161.5 million, assuming all outstanding shares are tendered. Upon satisfaction of the conditions to the tender offer and after such time as all shares tendered in the tender offer are accepted for payment, the agreement provides for the parties to effect, subject to customary conditions, a merger to be completed following the completion of the tender offer, which would result in all shares not tendered in the tender offer being converted into the right to receive $5.00 per share in cash. The transaction is subject to customary closing conditions, including regulatory approvals and is expected to close in the second calendar quarter of 2010. Chordiant reported revenue of $76.3 million and $52.3 million of cash and investments for its four quarters ended December 31, 2009. The boards of directors of both Pegasystems and Chordiant unanimously approved the definitive agreement.
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BPO and CRM are two very active areas of the market. This is not the first interest we have seen from companies in this sector in CRM, as there are many synergies and possible points of leverage. The majority of CRM technologies have also failed to embrace some of the technology advantages that ECM could provide around customer service. CRM is a technology sector that has wholeheartedly adopted SAAS, making it attractive, as many ECM software vendors have grappled with SAAS for some time, with varying degrees of success. Market indications show that it is growing in popularity with end users, despite the reluctance of some software vendors to embrace it fully.