Pivotal formally acquired by CDC Software
- 26 February, 2004 15:56
<p>Sydney, February 26, 2004 – Pivotal Corporation (Nasdaq: PVTL; TSX: PVT), a leading provider of customer relationship management (CRM) software for mid-sized enterprises, announced today that CDC Software Corporation (‘CDC’) a software unit of chinadotcom corporation (Nasdaq:CHINA) has formally completed its acquisition of Pivotal, after Pivotal shareholders voted overwhelmingly in favour of this move.</p>
<p>“We are excited about the closing of the acquisition” said Helen Robinson, Vice President and Australasian Managing Director for Pivotal. “In addition to the financing provided by chinadotcom for our further expansion in product and business development, the combination of the two companies will enable us to greatly increase our scale and enhance our product and services as well as broaden our geographic reach by leveraging the chinadotcom group’s software development capabilities and its global distribution platform, which is particularly strong in the fast growing China market”.</p>
<p>In the local market, Pivotal remains fully focused on delivering the highest levels of product innovation to its customer base to maintain its leadership status with regards the mid-enterprise CRM market. Pivotal has some 100 local customers including NSW Department of Sport & Recreation, Wizard Financial Services, Orlando Wyndham Group, KAZ Business Solutions (AAS), Medical Defence Authority of Victoria, Flag Hotels, Leukemia Foundation, and the Melbourne Football Club.</p>
<p>Highlights of the transaction include:
• Pivotal’s broad suite of marketing, sales, service and partner management capabilities will complement CDC Software’s existing Enterprise Resources Planning (“ERP”), Supply Chain Management (“SCM”) and Human Resources and Payroll (“HRP”) product offerings, which currently have limited CRM functionality.
• Pivotal adds an additional 1,700 customers to chinadotcom’s customer-base which totals 3,200 accounts worldwide. This large, global customer base provides a solid platform for cross-selling synergies within the group.
• Increase its R&D headcount by 35 percent by the end of CY 2004.
• Increase technical support headcount by 40 percent by March 2004 – Pivotal is already 50% of the way there with regards this strategy.
• Further enhancing its distribution capabilities in Asia via CDC.
• As part of CDC Software, Pivotal will continue to broaden and enhance its CRM products and services as well as build integration with other CDC Software products.
• After the completion of the transaction, the Pivotal management team will continue to focus on execution of the company’s strategy and operations, including operating as a distinct business unit within CDC Software.</p>
<p>“Undoubtedly CDC’s financial support enables Pivotal to adopt a longer term, far more growth-oriented focus on the market which allows our company to invest strategically in the future”, explained Robinson. “Our key focus for additional investment is in the areas of technical and customer support, product development, marketing, acquisitions and extending our distribution capability and we are already executing on these strategies”.</p>
<p>As previously announced, under the Arrangement, Pivotal shareholders who deposited their shares were entitled to elect to receive, in respect of each common share deposited, either:</p>
<p>(a) US$2.14 comprised of: (i) a cash payment of US$1.00; plus (ii) $1.14 of CDC shares (the “Cash and Share Option”); or</p>
<p>(b) a cash payment of US$2.00 (the “Cash Option”).</p>
<p>Pursuant to the terms of the Arrangement, Pivotal shareholders who have not specifically indicated an election for the Cash and Share Option are deemed to have elected the Cash Option.</p>
<p>Under the terms of the Arrangement, payment for deposited shares will be made by the depositary (CIBC Mellon) as soon as reasonably practicable. The depositary will forward to former Pivotal shareholders the consideration to which they are entitled under the Arrangement once proper tender of each shareholder’s Pivotal shares has been made and verified to have been made, and this process is expected to be completed by March 5, 2004.</p>
<p>For further information, please contact</p>
+61 2 9006 3367
+61 2 9006 3367
<p>About Pivotal Corporation</p>
<p>Pivotal Corporation is the only CRM company that is 100 percent purpose-built to serve the demanding requirements of mid-sized enterprises – a powerful, highly flexible application platform, a complete set of CRM applications, and low-cost, results-producing implementation services. Pivotal delivers software and services that produce meaningful increases in revenues, margins and customer loyalty for companies and business units in the revenue range of $100 million to $3 billion.</p>
<p>More than 1,700 companies around the world have licensed Pivotal including: Syngenta, Regus, Warehouse Stationery, NZ Trade & Enterprise, Employers and Manufacturers Association, Auckland Chamber of Commerce, Meridian Energy, Wizard Financial Services, NSW Sport and Recreation, Australian Red Cross. Multiple Sclerosis Society, BT Funds Management, Medical Defense Authority Victoria, Melbourne Football Club, HarperCollins Publishers, Hitachi Telecom Inc, Royal Bank of Canada, Sharp Electronics Corporation, and WebExCommunications.</p>
<p>Pivotal's complete CRM software suite includes a powerful application platform and capabilities in marketing, sales, service, contact centers, partner management and interactive selling. For more information, visit www.pivotal.com.</p>
<p>About chinadotcom corporation and CDC Software
chinadotcom corporation (NASDAQ: CHINA; Website: www.corp.china.com) is a leading integrated enterprise software and mobile applications company focused on China and internationally. The company has over 1,000 employees with operations in over 14 countries.</p>
<p>CDC Software, a wholly owned subsidiary, is focused on providing Enterprise Resource Planning (“ERP”) software and solutions in China, as well as internationally. Recently it completed the acquisition of a controlling stake in Industri-Matematik International (“IMI”), an international provider of mission critical SCM software for multinationals and large enterprises, based in New Jersey, U.S. with key operations in the U.S and Europe. It also owns Executive Suite, a sophisticated Business Intelligence (“BI”) tool with advanced financial analytics functionality based on Microsoft technology, and has invested in CIP Software, a European-based software company with exclusive distribution rights for Executive Suite in Europe, the Middle East and Africa. It currently has over 1,000 customer site installations and 600 enterprise customers in China and internationally.</p>
<p>For more information about chinadotcom corporation, please visit the website http://www.corp.china.com.</p>
<p>Safe Harbor Statements
This communication is not a solicitation of a proxy from any security holder of Pivotal. Nor is this communication an offer to purchase nor a solicitation of an offer to sell securities. Any offer will be made only through an exchange offer statement, information circular, proxy statement or similar document. Investors and security holders are strongly advised to read such document regarding the proposed all-cash or cash-and-stock transaction referred to in this communication, if and when such document is filed and becomes available, because it will contain important information. Any such document would be filed by chinadotcom with the United States Securities and Exchange Commission (“SEC”). Investors and security holders may obtain a free copy of such document (if and when filed and available) and other relevant documents related to the proposed all-cash or cash-and-stock transaction on the SEC’s web site at: <www.sec.gov>. Any such document and related materials may also be obtained for free by directing such requests to chinadotcom at the contact details set forth below. chinadotcom and its executive officers and directors may be deemed to be participants in the solicitation of proxies from Pivotal security holders in favor of the proposed transaction, should chinadotcom solicit such proxies. Information regarding the security ownership and other interests of chinadotcom’s executive officers and directors will be in included in any such exchange offer statement, information circular, proxy statement or similar document.</www.sec.gov></p>
<p>This press release includes certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on chinadotcom management's current expectations and are subject to risks and uncertainties and changes in circumstances. All forward-looking statements included in this press release are based upon information available to chinadotcom as of the date of the press release, and it assumes no obligation to update or alter its forward looking statements whether as a result of new information, future events or otherwise. Further information on risks or other factors that could affect chinadotcom's results of operations is detailed in its filings or submissions with the SEC, including the Annual Report for the year ended December 31, 2002 on Form 20-F/A filed on January 20, 2004 and the Form 6-K submitted on February 12, 2004 which contain revised and updated sections of the Form 20-F/A.</p>