Vancouver, Canada and Linköping, Sweden, April 12, 2000
Pivotal enables a new generation of Microsoft-based Internet solutions for integrated eSelling and eBusiness Relationship Management
— Pivotal Corporation (NASDAQ:PVTL), The eBusiness Relationship Company, today announced the signing of a definitive agreement to acquire 100 percent of Exactium Ltd. Pivotal simultaneously announced the availability of Pivotal Intelligent eSelling 2000™, an Internet application suite based on Exactium's technology that establishes powerful eSelling operations. Pivotal Intelligent eSelling 2000 will be fully integrated with the Pivotal eRelationship 2000™ solution for eBusiness relationship management (eBRM), setting a new benchmark for Internet business solutions available from a single vendor.
Exactium, based in Atlanta, Georgia, is a leading provider of eSelling solutions optimized for Internet and Microsoft standards. Prior to the closing of the acquisition by Pivotal, Exactium has been majority-owned by publicly-held Industrial & Financial Systems AB (IFS AB), a global leader in the enterprise application marketplace. As part of the transaction, Pivotal and IFS have established a broad alliance agreement whereby IFS will distribute Pivotal's award-winning eBRM solution, and Pivotal will provide support services for IFS's customers and prospects.
Under the terms of the definitive agreement, Pivotal will pay US$48 million for all shares of Exactium. Consideration will consist of US$11.3 million in cash, with the balance paid in common shares of Pivotal. As a result of the transaction, Pivotal will issue approximately 925,000 shares of its common shares, or approximately 4 percent of the combined company, on a fully diluted basis. The transaction will be accounted for as a purchase. The closing of the acquisition is subject to customary closing conditions, including regulatory approvals.
By leveraging Exactium's technology, Pivotal Intelligent eSelling 2000 is the first eSelling platform fully architected on an XML backbone. The new Pivotal solution surpasses the current generation of eSelling solutions by adding intelligent features for performing needs analysis, recommending products and services, advising customers on features and options, and configuring complex orders with ease and accuracy.
"The acquisition of Exactium establishes Pivotal as the unrivalled leader in Microsoft-based Internet solutions in two mission-critical areas: intelligent eSelling and eBusiness relationship management," said Norm Francis, president and CEO, Pivotal Corporation. "Pivotal and Exactium's complementary Web solutions combine to offer businesses an unprecedented opportunity to exploit the Internet as a channel for servicing customers and selling. Our common standardization on the Microsoft Windows 2000 platform will enable the fast, comprehensive integration of our products. In addition to bringing first-rate technology to Pivotal, the management and staff of Exactium bring deep industry expertise in intelligent eSelling. Today's announcement clearly demonstrates Pivotal's continued commitment to rapid technology innovation that allows companies to be at the forefront of the Internet revolution and become more customer-centric."
According to Eli Barak, president and CEO, Exactium, "Together, Pivotal and Exactium will enable companies to capitalize on new models of Internet selling which require sophisticated capabilities for interacting with customers, making product recommendations and providing advice during the selling and ordering process. Pivotal has already proven its leadership in helping companies to build strong, personalized relationships with customers. And now, Pivotal Intelligent eSelling 2000 will give companies a compelling competitive edge to sell more effectively over the Internet."
Upon completion of the acquisition, Exactium will be established as the Pivotal Intelligent eSelling Product Division and Eli Barak will be appointed to the position of vice president and general manager of the product division.
According to Vince Mifsud, CFO and vice president, operations, Pivotal, "The Pivotal Intelligent eSelling 2000 product based on Exactium's technology is an ideal product for which Pivotal can leverage its global distribution network. In addition to the product synergies between Pivotal and Exactium, we share similar corporate cultures which will foster a fast and seamless integration of the companies."
Pivotal Intelligent eSelling 2000
Pivotal Intelligent eSelling 2000 will deliver state-of-the-art capabilities for single and multi-vendor product-catalog aggregation, advanced personalization, proactive notification, recommendation, configuration, quoting and order management to enable one-to-one and many-to-many relationships between buyers and sellers.
Pivotal Intelligent eSelling 2000 is built on a next-generation component-based, n-tier, distributed Internet architecture based on the Windows DNA 2000 framework. This robust multi-threaded architecture delivers enterprise-class scalability and first-rate reliability, including dynamic load balancing and fail-over protection. It leverages standards-based technologies, including XML, XSL, SQL Server 7.0 and COM+.
A sophisticated configuration engine using a combination of rules and constraint-based reasoning means that the most complex products and services can be configured for sale through a flexible, intuitive and interactive experience for the customer.
Pivotal Intelligent eSelling 2000 uses XSL templates to provide a fully personalized Internet buying experience. A template server selects templates and dynamically merges them with content and data to create a personalized view in the browser. For example, the system can present a dynamically-personalized catalogue and product or service configuration with appropriate pricing, quotes and proposals, all based on the customer's unique profile.
Pivotal Intelligent eSelling 2000 can simultaneously support multiple languages, currencies, units of measure, products, and pricing. Together with template-based personalization, this allows Pivotal Intelligent eSelling 2000 to present unique buying experiences to a diverse worldwide audience based on their cultural preferences.
When integrated with Pivotal eRelationship 2000, Pivotal Intelligent eSelling 2000 will use customer and product knowledge from the Pivotal database to create unique, personalized buying experiences for each customer.
The multi-user authoring environment allows distributed workgroups to share management of the same Pivotal Intelligent eSelling 2000 solution in real time using a Web browser. The solution presents a role-based user interface and functionality appropriate for individual responsibilities; for example, graphic designers can be responsible for the look and feel of the site, while product managers control product groups and configurations, and finance personnel control pricing.
Pivotal Intelligent eSelling 2000 is expected to be available to customers immediately after the closing of the acquisition of Exactium by Pivotal.
Conference Call for the Investment Community:
Pivotal will host a conference call to discuss this announcement at 11:00 am PDT (2:00 pm EDT) on Wednesday, April 12, 2000. Please access the call a few minutes prior to the start time to ensure you are on the line when the call begins. To access the call, please note the following information:
Date: Wednesday, April 12, 2000
Start Time: 11:00 am PDT (2:00 pm EDT)
Within the U.S. or Canada: 1-800-628-7190
Outside the U.S. or Canada: 1-706-634-5511
Ask for conference call name: Pivotal Corporation Conference Call
The conference call will be available for replay for 48 hours after the announcement. For callers within the U.S. or Canada, the replay number is 1-800-642-1687. For callers outside the U.S. or Canada, the replay number is 706-645-9291. The replay pass code for all callers is 185939.
If you have any questions or would like a copy of the release, please call 604-988.9982 and ask for investor relations or email: email@example.com.
About Exactium Ltd.
Exactium, a leading eSelling software provider, enables companies to sell complex products and services on their eCommerce Web sites. The company's flagship product, Exactium eSelling 2000, helps an organization deploy an integrated selling solution for all sales channels including direct sales, indirect sales and Web sales. With powerful configuration, needs analysis, and guided selling capabilities, Exactium eSelling 2000 provides users with an intuitive buying process from product selection and configuration to quoting and ordering. By simplifying the buying experience for all sales channels, Exactium enables organizations to sell more effectively, improve customer satisfaction and lower the cost of sales.
Pivotal Corporation, The eBusiness Relationship Company, enables organizations, globally, to increase revenue and improve customer loyalty by providing highly scalable, Microsoft-based Internet solutions for managing relationships between customers, employees, and business partners. Pivotal's eRelationship 2000 solution provides integrated applications for eSelling, eMarketing, eCommerce, and eService, and an industrial-strength Internet platform for building and deploying personalized, intelligent Web sites for customers and business partners integrated with context-sensitive Web portals for front-office employees. Pivotal solutions are designed for Web, wireless and hosted deployment, and are provided on a flexible license, lease, or subscription basis to support a wide variety of business models.
Pivotal solutions are sold in 34 countries and available in English, French, German, Spanish, Portuguese, Swedish, Japanese and Chinese. Pivotal's worldwide customer base includes more than 800 organizations in traditional, commercial and public market sectors and the new digital economy, including KPMG, CornerDrugstore.com, Ericsson, Medpool.com, Nissan Motor Corp., HarperCollins Publishing, Deutsche Bank, Trader.com, Southern Company, Lucent Technologies, NEC, Deloitte & Touche, Principal Financial Group and Red Cross Australia.
Pivotal is a public company traded on the NASDAQ under the symbol "PVTL" and can be found on the Web at http://www.pivotal.com.
This press release contains forward-looking statements including statements about the closing of the purchase by Pivotal of all of the shares of Exactium, the anticipated ease of integration of Pivotal and Exactium, the future exploitation of the Internet due to the combined solutions of Exactium and Pivotal, the ability of Pivotal to integrate Pivotal and Exactium's products, the continued development, deployment and performance of the Pivotal and Exactium products and the growth of Pivotal's international distribution network as a result of its alliance with IFS. This release also contains forward-looking statements about the development, deployment and performance of Pivotal Intelligent eSelling 2000, the shipping date of this product and the scalability and ease of implementation of this product. These statements are based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements due to a number of risks, uncertainties and other factors, such as the need for governmental regulatory approval, unanticipated difficulties in integrating Pivotal's and Exactium's businesses, the possibility of a decline or leveling in the growth of the Internet and eCommerce markets, the possibility of technical difficulties or delay in future product introductions and improvements, product pricing, the continued commitment and cooperation of IFS and the possibility that competitors will introduce new and improved products and services and the need to compete successfully with existing and new products and services offered by competitors. Pivotal undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.