Siebel Systems, Inc., a leading provider of business applications software, announced that it has signed a definitive agreement to acquire Natick, Massachusetts-based edocs, Inc., a leading provider of e-billing and customer self-service software solutions. The acquisition is expected to expand Siebel's products and services offerings in the growing $3 billion market for e-billing and customer self-service applications.
Through the proposed acquisition, Siebel expects to deliver a comprehensive self-service solution, enabling companies to improve their customers' experience and reduce costs and churn. The proposed acquisition will also strengthen Siebel Systems' offerings of multi-channel customer-facing solutions. The acquisition is fully aligned with Siebel's growth strategy to provide a broader and deeper range of front-office solutions that deliver demonstrable business value for its customers.
Under the terms of the deal, Siebel Systems will initially pay $115 million in cash to edocs shareholders. Additional payments, based on achieving revenue and other contractual milestones, may be paid in 2006. Excluding the impact of a one-time merger-related charge, the company expects the transaction will reduce Q1 2005 earnings by approximately $0.01 per share. Additionally, the company currently expects a one-time charge in Q1 2005 estimated at $8-10 million, although the company is still completing its asset allocation analysis and this estimate is subject to change. Siebel Systems expects the transaction to be approximately neutral to earnings for the remainder of 2005. The Siebel Systems and edocs boards of directors have approved the acquisition, which is subject to customary closing conditions, including regulatory approvals. The transaction is expected to close in early Q1 2005.
edocs provides a comprehensive software platform for eBilling and customer self-service. edocs' solutions have been deployed at leading organizations worldwide, such as British Telecom, Harvard Pilgrim Healthcare, KPN, Toyota Financial Services, TXU, and Verizon Wireless in some of the most rigorous business and complex technical environments. Its offerings are built on scalable, standards-based J2EE self-service platforms, with a total cost of ownership (TCO) lower than competing packaged or custom-developed solutions.
Register or login for access to this item and much more
All Information Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access