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2005-05-10 - San Jose, CA, USA: Product configuration software vendor Selectica, Inc. (NASDAQ:SLTC) has announced the acquisition of the contract management products of privately-held Determine Software, Inc. The purchase of these products from Determine Software should help to increase Selectica's presence outside its original core of product configuration. It appears that this purchase is being made as a response to the unsuccessful merger bid with iMany, since there is some similarity between the products purchased from Determine Software, and those of iMany.
Determine Software is a specialist provider of enterprise contract management solutions, which includes the ability to aggregate and analyze enterprise-wide contract information, automate and accelerate contract related business processes, enforce contract and relationship compliance (Sarbanes Oxley) and automate the contract process from request to signature.
With the addition of Determine Software's capabilities, Selectica will extend its offerings to include contract management solutions. Selectica will be able to manage every aspect of the contract lifecycle from request to signature, providing a complete Opportunity-to-Contract Solution for its customers and prospects. Also, Selectica will offer a comprehensive suite of software designed for automating revenue-centric processes for global enterprises engaged in both sell-side (customer facing) and buy-side (supplier facing) transactions. Selectica's solutions link CRM and ERP applications by enabling the configuration, pricing, and quoting of complex, bundled products and solutions. Determine has marquee customers including: Time Warner, Ace Hardware, Cummins, Triad Hospitals, 7-Eleven, and Qlogic.
"With this acquisition, we have made strong progress towards a key strategic priority - expanding our product suite to include contract and compliance management solutions - while also preserving our balance sheet strength," said Vince Ostrosky, CEO of Selectica, Inc. "The requirements of Sarbanes-Oxley and Section 404 have created an increasing need for enterprise-wide solutions that manage the creation, execution and analysis of contracts. Having invested approximately $40 million into developing its software, Determine Software has established itself as a technology leader in enterprise contract management solutions with an impressive client roster. With the financial strength of Selectica behind Determine's products, we will be able to alleviate a major concern of prospective customers evaluating these contract management solutions, as well as utilize our existing resources to implement more aggressive sales and marketing strategies. We are extremely pleased to have taken an important step toward entering a rapidly growing market that we believe will have a positive impact on our ability to drive top-line growth."
Determine's robust technology complements Selectica's Enterprise Productivity Suite by providing contract management solutions for multiple disciplines - including, sales, marketing, finance, procurement and legal - within an enterprise. Selectica will continue to offer customers Determine's complete contract management software through onsite implementations at the customer's locations and OnDemand implementation.
Rick Kreysar, President and CEO of Determine Software said, "Selectica is the right choice for an acquisition partner for us - our customers will benefit from a comprehensive suite of products and the talented people at Selectica. Enterprise Contract Management solutions are strategically important to corporations today, and we believe that with the addition of Determine Software's best-of-breed technology and OnDemand domain expertise, Selectica will immediately become a formidable player in this emerging software category."
Under the terms of the transaction, Selectica will acquire the products of Determine Software for approximately $1 million in aggregate cash consideration. In connection with the acquisition, Selectica will hire key Determine Software employees, and expects to ship the next version of the Enterprise Contract Management software on schedule. The company believes that the transaction will be accretive in the second half of the year.