Siebel Systems Completes Acquisition of edocs, Inc.
Siebel to Deliver Comprehensive CRM, eBilling and Self-Service Solution that
Improves Customer Service and Satisfaction
San Mateo, CA. – January 14, 2005 - Siebel Systems, Inc. (NASDAQ: SEBL), a leading provider of business applications software, today announced that it has closed its acquisition of edocs, Inc., a leading provider of eBilling and customer self-service software solutions.
Under the terms of the deal, Siebel Systems will initially pay $115 million in cash to edocs shareholders. Additional payments, based on achieving revenue and other contractual milestones, may be paid in 2006. Excluding the impact of a one-time merger-related charge, the company expects the transaction will reduce Q1 2005 earnings by approximately $0.01 per share. Additionally, the company currently expects a one-time charge in Q1 2005 estimated at $8-10 million, although the company is still completing its asset allocation analysis and this estimate is subject to change. Siebel Systems expects the transaction to be approximately neutral to earnings for the remainder of 2005.
“The complementary strengths of Siebel Systems and edocs will enable our customers to capitalize on the tremendous value of customer self-service applications,” said J. Michael Lawrie, CEO, Siebel Systems. “These applications have become a vital component of many companies’ channel strategies because they guide customers to the lowest cost, most appropriate channel for each interaction, thereby delivering a superior customer experience at a dramatically reduced cost. The growth of self-service applications is a clear front-office trend, and with the closing of this acquisition we are capitalizing on this growth opportunity.”
Siebel Systems plans to integrate its industry-leading CRM solutions with edocs’ customer service and eBilling applications to deliver one of the industry’s most comprehensive self-service solutions enabling companies to drive higher levels of customer satisfaction and adoption. The acquisition also extends Siebel’s current eService solution to include market-leading eBilling functionality, helping companies achieve immediate cost savings while offering a richer self-service experience to their customers.
edocs’ solutions enable companies to improve customer service and increase customer loyalty while reducing the overall cost of serving their customers. Companies use edocs’ solutions to move the most common customer inquiries and transactions – such as billing, account management, and service order issues -- from expensive channels such as paper correspondence and contact center calls, to lower-cost self-service and assisted care channels such as the Web, email, and chat.
About Siebel Systems - Siebel Systems, Inc. is a leading provider of business applications software, enabling corporations to sell to, market to, and serve customers across multiple channels and lines of business. With more than 4,000 customer deployments worldwide, Siebel Systems provides organizations with a proven set of industry-specific best practices, CRM applications, market-leading analytics products, and business processes, empowering them to consistently deliver superior customer experiences and establish more profitable customer relationships. Siebel Systems’ sales and service facilities are located in more than 30 countries. For more information about Siebel Systems, Inc., please visit www.siebel.com.