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CDC Software Corporation to Purchase Pivotal

  • 10 December, 2003 11:28

<p>(Sydney, December 10) – 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”) will acquire Pivotal.</p>
<p>A definitive arrangement agreement has been signed in a deal worth between US$53 AND US$57 million depending on shareholder options. The transaction is expected to close before the end of February 2004, subject to the approval of Pivotal's shareholders and the Supreme Court of British Columbia, as well as customary closing conditions.</p>
<p>CDC Software Corporation is a subsidiary of chinadotcom corporation, a global enterprise software and mobile applications company focused on CRM, ERP, and SCM. CDC Software will make Pivotal the cornerstone of its global mid-enterprise focused CRM strategy.</p>
<p>This strategic move wholly serves to allow Pivotal to re-establish its leadership position in the mid-enterprise CRM market.</p>
<p>Pivotal also announced that, following the closing of the transaction, it expects to accelerate investments in its growth including increasing technical support headcount by up to 40%, resuming the expansion of its R&amp;D headcount, resuming its acquisition program, expanding distribution capabilities in Asia through CDC Software, and increasing marketing spending. Pivotal also has two releases -- Pivotal 5.1 and 5.2 -- planned for 2004, and a major product announcement is in the works for the second half of the year.</p>
<p>“We are thrilled at the prospect of becoming a part of CDC Software,” said Helen Robinson, Australasian Vice President and Managing Director for Pivotal. “We wholeheartedly believe this proposed strategic combination will re-establish Pivotal as the clear leader in the mid-enterprise market as we believe no other vendor is or will be able to meet all the key criteria for leadership in this market segment.”</p>
<p>“Everything about Pivotal’s strategy, brand, architecture, cross industry applications, vertical applications, partners, and management team will remain intact and Pivotal will operate as a distinct business unit within CDC Software” assures Robinson.</p>
<p>“Importantly this move by CDC and the bidding war that has eschewed in the past weeks between other parties clearly indicates the immense value companies place on solidifying their hold on CRM in the marketplace”, says Robinson. “Major software vendors are seeing that they need CRM as an essential part of their mix if they are to remain competitive in the market and CDC is a great example of a progressive company who sees where the future lies”.</p>
<p>As the cornerstone of CDC Software’s CRM strategy, Pivotal will drive accretive benefits to the chinadotcom group, particularly as it implements its post-closing initiatives. As part of CDC Software, Pivotal will benefit in five distinct ways – including being able to:
• Provide long-term financial stability to its prospects, customers, and partners;
• Continue to aggressively and strategically invest in its future, including increasing investments in product, marketing, sales reps, and services as well as recommencing its acquisition program;
• Cross-sell Pivotal solutions into CDC’s soon to be more than 1,600 other customers;
• Continue to aggressively build its Asian business by leveraging CDC’s established distribution capability;
• Augment its offshore capabilities in India by accessing chinadotcom’s cost-effective India and China-based offshore resources.</p>
<p>CDC Software is a wholly owned subsidiary of chinadotcom, a leading enterprise software and mobile applications company globally. chinadotcom provides Pivotal with significant financial support with its profitable and growing operations; a $363 million cash position as of September 30, 2003; and an $830 million market capitalization as of December 4, 2003. In Australasia CDC has offices in Sydney.</p>
<p>For further information please contact:
Jos Budge
PR – Pivotal Corporation
+ 61 2 9255 7966
+ 61 400 34 88 78
jos@eklektik-consulting.com</p>

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