Talisma to merge with Pivotal Corp
Thursday, 09 October 2003, 19:30 IST
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MUMBAI: Bangalore-based CRM product company Talisma Corporation is being merged with Pivotal Corporation, a Nasdaq listed company based in Vancouver. The merger has been driven by the acquisition of Pivotal by the US-based $4.3 billion private equity fund Oak Investment Partners. The latter is also a key investor in Talisma. Pivotal Corporation on Wednesday announced an agreement under which Oak Investment Partners will pay US $1.78 cash per share for all of the outstanding shares of Pivotal. Oak may also pay additional consideration of up to $0.03 per share depending on the company’s financial performance. Concurrently, Pivotal’s business will be combined with Talisma Corporation, the company informed Nasdaq. Oak Investment Partners will be the controlling shareholder of the combined business. The transaction will close in November or December 2003. The share exchange ratio is not known. Oak Investment is merging Talisma and Pivotal as both companies sell CRM products and compete against each other in the marketplace. Talisma Corporation was one of the early software product companies with most of its product development taking place in India. Though, Talisma’s headquarters are in Kirkland, Washington, it is considered an Indian company as most of its development and the majority of its work force is Indian and is based in India. Talisma was founded by ex-Microsoft employee Pradeep Singh. Singh resigned as Chairman and CEO of the company earlier this year while US-based Dan Vetras took over as CEO of the company. Oak Investment has been pumping money into the company for the last few years. The fund is the largest single investor in the firm, though its exact investment is not known. Cumulatively, over the last several rounds of funding, Talisma has raised more than $66 million (more than Rs 300 crore). In the last round of funding, Oak Hill was the lead investor. Other investors in Talisma are SeaPoint Ventures and angel investor Paul Maritz. Pivotal’s board and its financial advisor, RBC Capital Markets have approved the transaction as the best alternative for Pivotal shareholders, and wants them to vote to approve the cash offer from Oak, the company said in its announcement. “We believe that there is tremendous opportunity to create a stronger solution provider for the mid-enterprise market. Oak’s strategic and financial support, combined with the Pivotal-Talisma merger, creates a compelling CRM choice for the mid-enterprise,” Fredric Harman, general partner, Oak Investment Partners, was quoted as saying. “In addition, both companies’ India-based capabilities create synergies for the combined entity,” Harman said. Along with Oak, Mr Paul Maritz, former group vice president of Microsoft’s Platforms Strategy and Developer Group, will also be an investor in the combined company, The merger with Talisma will more than double Pivotal’s R&D and technical manpower Pivotal’s new management team will have key members of both Pivotal’s and Talisma’s current management teams. Bo Manning will continue as president and CEO of Pivotal Corporation, responsible for the new combined entity. Talisma’s CEO Dan Vetras will be appointed to the position of chief operating officer, reporting to Manning. (source: Economic Times)
Source: IANS
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