Pegasystems agrees $161.5m Chordiant acquisition
15 March 2010 | 7988 views | 0
BPM specialist Pegasystems is to buy customer relationship management software firm Chordiant in a cash deal worth around $161 million.
Under the deal, unanimously backed by both boards, Pegasystems will make a cash tender offer of $5.00 per share for all outstanding shares of Chordiant common stock, a 31% premium on the Friday closing price.
Headquartered in Silicon Valley, with offices in Europe and China, Chordiant claims over 200 customers, including major financial institutions such as AIG, Barclays, Deutsche Bank, HSBS and ING. The company reported revenue of $76.3 million with $52.3 million of cash and investments for its four quarters ended 31 December.
Pegasystems says significant closing costs, integration expenses and other purchase accounting valuation charges related to the acquisition will be dilutive to Gaap reported earnings. However, on a non-Gaap basis the transaction is expected to be accretive by as much as three cents to 2010 earnings per share and 20 cents to 2011 EPS.
Alan Trefler, CEO, Pegasystems, says: "This combination creates a broader portfolio which will offer an expanded client base new capabilities to meet next-generation CRM needs. We are excited to add Chordiant's technology and domain expertise to bolster our previously announced investment plans in BPM and CRM."
The agreement is expected to close in the second quarter, subject to customary closing conditions, including regulatory approvals.