Emeryville, CA September 4, 2002 Canadian e-business solution provider Geac Computer Corp. is set to acquire Extensity, a provider of employee relationship management (ERM) solutions, in a deal estimated to be worth about $46 million.
The Canadian company, based in Toronto, will maintain Extensity's solution, making it a platform upon which Geac will continue to build future enterprise applications.
Under the terms of the agreement, Extensity shareholders can elect to receive $1.75 in cash or 0.627 of a Geac common share for each share of Extensity common stock held, subject to adjustment in certain circumstances.
Assuming 100 percent of Extensity's shareholders elect to receive cash and assuming the exercise of certain outstanding Extensity options, the total value of the transaction would be approximately $46.2 million.
"We believe this transaction provides tremendous long-term value to all our stakeholders," said Bob Spinner, president and CEO of Extensity. "Customers will particularly benefit from the global resources of this large corporation and from Geac's shared focus on enterprise solutions that deliver a high return on investment."
Spinner added, "Geac's demonstrated commitment to the Extensity platform provides customers with assurance that their investments in Extensity technology are well protected. Under the Geac operation, Extensity will continue its focus on Global 2000 customers, and Geac will continue to introduce the Extensity suite to its client base."
"Continuing high levels of customer service and customer satisfaction will be a main focus of the combined companies, and we will work to ensure that customer relationships are not interrupted," said Paul Birch, President and CEO of Geac.
Extensity said it has licensed more than 1,000,000 seats worldwide to companies such as A.T. Kearney, Cisco Systems, Merck and Office Depot.
