Oak plans to merge Talisma with Pivotal Corp
Bangalore-based CRM product company Talisma Corporation, is being merged with Pivotal Corporation.
Pivotal Corp is a Nasdaq listed company based in Vancouver.
Talisma was recently bought by the US-based $4.3 billion private equity fund, Oak Investment Partners. The latter is also a key investor in Talisma. The merger was driven by the acquisition move.
Pivotal Corporation declared an agreement on Wednesday, 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 performance. As a result, Pivotal¨s business will be combined with Talisma Corporation, the company informed Nasdaq.
Oak Investment Partners will be the controlling shareholder of the merged business. The transaction will close in November or December 2003. The share exchange ratio, however, 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 is a software company, with most of its product development, being carried out in India. Though, Talisma¨s headquarters are in Kirkland, Washington, it is considered an Indian company, as a majority of its work force is Indian, and based in India.
Talisma was founded by ex-Microsoft employee Pradeep Singh. Mr 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 over the last few years. The fund is the largest single investor in the firm, though its exact stake is unknown.
Cumulatively, over the last several rounds of funding, Talisma has raised 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 entrepreneur Paul Maritz.
Pivotal¨s board and its financial advisor, RBC Capital Markets, have approved the transaction to be in the best interest of Pivotal shareholders, and wants them to vote to approve the cash offer from Oak, the company said in an announcement.
According to Mr Fredric Harman, general partner, Oak Investment Partners, “Both companies exhibit proven India-based capabilities, which creates an exceptional ’synergy¨ for the combined entity.”
Along with Oak, Mr Paul Maritz, former vice president of Microsoft¨s Platforms Strategy and Developer Group, will also invest in the merged unit.
Pivotal¨s new management team will consist of members of both Pivotal and Talisma. Mr Bo Manning shall continue as president and CEO, whereas Talisma¨s CEO Dan Vetras, will take over as COO.
The merger with Talisma, is expected to double Pivotal¨s R&D and technical manpower
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