SAN JOSE, Calif. and PARIS – July 20,
2005 – Business Objects (Nasdaq: BOBJ; Euronext Paris ISIN
code: FR0004026250 - BOB), the world's leading provider of business intelligence
(BI) solutions, today announced that it has entered into a definitive
agreement to acquire privately-held SRC Software, a leading vendor of
financial planning and performance management software.
The acquisition will be an all-cash transaction of approximately $100M
US and will be accounted for under the purchase method of accounting.
The transaction is expected to be accretive to Business Objects on both
a US GAAP and pro forma basis beginning in the first quarter of 2006.
The acquisition is subject to regulatory approvals and other customary
closing conditions, and is expected to be completed in the third quarter
of 2005.
SRC Software is a leading vendor of financial planning and performance
management products, offering integrated budgeting, planning, consolidations,
and reporting systems. The company has more than 1,200 customers worldwide.
SRC Software has been a long-term Business Objects technology partner,
offering industry leading solutions for strategic planning, forecasting,
capital planning, budgeting, sales and compensation planning, and consolidations.
SRC Software's performance management products are integrated today with
BusinessObjects™ XI, allowing extreme insight for all departments
and functional areas on the industry's most trusted BI platform. Additionally,
as a result of this product integration, users can seamlessly integrate
with Microsoft Office in order to unlock the power of their business intelligence
and planning information to drive new levels of performance.
"Adding financial planning, budgeting, and consolidations to our
portfolio marks a logical step in our evolution," said Bernard Liautaud,
chairman and CEO of Business Objects. "Organizations are looking
to the CFO for more than financial gatekeeping and compliance, they want
a strategic partner that can help them optimize business operations and
plan for the future. These same organizations want to partner with a software
vendor that can help them win – and ultimately drive change –
in their market and their industry. Adding SRC Software's financial planning,
budgeting, and consolidations capabilities to the trusted BusinessObjects
XI platform gives our customers unmatched capabilities for optimizing
their organizational performance."
"Business Objects and SRC Software intend to deliver a winning
combination for customers and employees," said Tom Malone, CEO of
SRC Software. "SRC Software brings to Business Objects excellent
products, a strong team, and a consistent record of high customer satisfaction
and loyalty. We look forward to working with Business Objects to help
our customers optimize the performance of their organizations."
About SRC Software
SRC Software (www.srcsoftware.com) is the leader in providing flexibility
and sophistication for enterprise financial planning and corporate performance
management. With more than 2,400 installations in mid- to high-end enterprises,
SRC Software's highly-personalized budgeting, payroll planning, and multi-source
consolidation and reporting solutions are used by companies such as New
Balance, Union Bank of California, C-SPAN, Lands' End, and Caterpillar
Logistics Services. SRC Software offers a full complement of financial
planning and analysis tools through its unique integration of spreadsheets
and industry-leading databases complete with full-scale web deployment.
SRC Software is privately held and majority owned by San Francisco-based
Vista Equity Partners, a $1.3B private equity fund focused on high technology
growth investments. SRC Software is privately held and based in Portland,
Oregon with regional offices in New York City and Chicago, and international
offices in Brussels, London, Stockholm, and Singapore.
About Business Objects
Business Objects is the world’s leading business intelligence (BI)
software company. With more than 30,000 customers worldwide, including
over 80 percent of the Fortune 500, Business Objects helps organizations
gain better insight into their business, improve decision making, and
optimize enterprise performance. The company’s business intelligence
platform, BusinessObjects™ XI, offers the BI industry’s most
advanced and complete platform for reporting, query and analysis, performance
management, and data integration. BusinessObjects XI includes Crystal
Reports®, the industry standard for enterprise reporting. Business
Objects has also built the industry’s strongest and most diverse
partner community, and also offers consulting and education services to
help customers effectively deploy their business intelligence projects.
Business Objects has dual headquarters in San Jose, Calif., and Paris,
France. The company’s stock is traded on both the Nasdaq (BOBJ)
and Euronext Paris (ISIN: FR0004026250 - BOB) stock exchanges.
Forward Looking Statements
This document contains forward-looking statements that involve risks and
uncertainties concerning the Business Objects products, SRC Software's
products, the closing of the transaction, and impact of the transaction
on Business Objects financial results. Actual events or results may differ
materially from those described in this document due to a number of risks
and uncertainties. The potential risks and uncertainties include, among
others: Business Objects ability to attract and retain customer support
for SRC Software's products, the ability to generate new sources of revenue
from SRC Software's products, to realize other financial benefits from
the proposed acquisition, to strengthen its position in enterprise performance
management, as well as the outcome of regulatory reviews of the transaction
and the ability of the parties to complete the proposed transaction. More
information about potential factors that could affect Business Objects
business and financial results is included in Business Objects Form 10-Q
for the quarter ended March 31, 2005 and Business Objects Form 10-K for
the year ended December 31, 2004, which are on file with the Securities
and Exchange Commission (the "SEC") and available at the SEC's
website at www.sec.gov. Business Objects is not obligated to undertake
any obligation to update these forward-looking statements to reflect events
or circumstances after the date of this document. This document will also
include non-GAAP financial measures described as pro forma information.
A reconciliation of this pro forma information to U.S. GAAP financial
statements is available on our investor relations web page at www.businessobjects.com.
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