Concerto Software, Melita merge

Our Convergence Bureau
20 October 2003

New Delhi: Concerto Software, a proven provider of customer interaction management (CIM) solutions, has announced that it has entered into an agreement and plan of merger with Melita International, a global provider of products and services focused on maximising contact centre effectiveness.

The transaction is valued at approximately $145.2 million. Under the terms of the merger agreement, Concerto Software will combine with Melita and the combined company will operate under the name of Concerto Software Inc.

Except for certain shares held by certain officers and a director of Concerto Software, which will be exchanged for a minority equity interest in the new company, all of Concerto Software’s outstanding shares will be purchased for $12.00 per share in cash. This represents a 29-per cent premium to the last closing price of $9.31 per share. Golden Gate Capital and Oak Investment Partners, both private equity investment firms and majority owners of Melita, are providing the financing for the transaction.

In addition, Concerto Software announced that based upon its preliminary estimates, it expects to report third quarter total revenue in the range of $26.5 to $27.2 million and earnings of $0.07-0.08 per diluted share on a generally accepted accounting principles basis. The company also estimates that its cash and short-term investments at the end of the third quarter total approximately $28.8 million.

As a result of the merger, Concerto Software Inc will strengthen its presence in the global CIM market and provide significant benefits to its worldwide customer base of more than 1,800 customers. The combined company will deliver expanded professional services, have increased direct and indirect sales reach, provide a wider array of solutions, and broaden its support infrastructure through centres of excellence throughout the Americas, Europe and Asia Pacific.

Until the completion of the merger, the two companies will continue to operate as independent entities and both remain committed to supporting and further evolving all of their respective leading contact centre solutions pre- and post-transaction completion.