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2005-04-06 - San Jose, CA, USA: Shareholders in I-many, Inc. (NASDAQ:IMNY), have voted to reject the proposed sale of the company to Selectica, Inc. under the terms in the Agreement and Plan of Merger between the parties, entered into on December 3, 2004. Accordingly, the Agreement and Plan of Merger has been terminated.
The writing was on the wall for the proposed merger ever since I-Many's largest shareholder, Diker Management, LLC announced it would vote against the proposed merger. Diker Management holds approximately 19.4% of I-Many shares. It believed that the proposed price is lower than the Company's intrinsic value, and also noted that the proposed price was in fact a discount to the $1.74 high the Company's stock reached on November 11, 2004, just three weeks prior to the announcement of the proposed merger. Selectica had offered to pay $1.55 per share in cash for all outstanding shares of I-many common stock.
Following the vote of I-Many stockholders against the proposed merger at its special stockholder meeting on March 31, I-many CEO and president A. Leigh Powell commented, "While our board and I supported the proposed transaction, we fully accept the vote of our shareholders, several of which have publicly announced their belief that the value of I-many exceeds the value of the proposed transaction. Given our strong performance in the fourth quarter of 2004, which included 9 new clients, $12.3 million of recognized and deferred new revenue, full year 2004 pro forma profitability, and outlook for continuing pro forma profitability this year, I believe we are well positioned for 2005. I look forward to helping I-many fulfill its vision and leading the rapidly growing market for Enterprise Contract Management and Corporate Commitment solutions."
It had been planned that the combined company would have a comprehensive suite of products designed to lead the emerging multi-billion dollar market for automating revenue-centric processes for global enterprises engaged in both sell-side (customer facing - represented by Selectica), and buy-side transactions (supplier facing - represented by I-Many).
Vince Ostrosky, CEO of Selectica said, "While the outcome of today's vote isn't what we had hoped for, we respect the decision of I-many's stockholders. As the recognized leader in developing solutions for companies with complex configuration, pricing and quoting, Selectica is well-positioned in its markets. We will continue to implement our stated business plan and, to that end, believe that customers and stockholders will benefit from the roll-out of our new products. Further, as part of our ongoing strategy to enhance stockholder value, we still intend to expand Selectica's product suite to include contract management solutions - an adjacent market."