Pegasystems to buy Chordiant Software for $161.5 million, or $5 per share

Monday, March 15, 2010

Pegasystems to buy Chordiant for $161.5 million

CAMBRIDGE, Mass. — Pegasystems said Monday it will buy Chordiant Software for $161.5 million.

Business software maker said the acquisition will help expand its customer base.

The $5-per-share offer represents a 31 percent premium over Chordiant’s closing stock price of $3.81 Friday and comes two months after Chordiant rejected an offer from CDC Software Corp. for $3.46 per share.

The Chinese business software developer withdrew its offer and sold its 1.3 percent stake in the company.

The Pegasystems offer has been approved by both companies’ boards and is expected to close in the second quarter.

Chordiant, which makes software intended the help companies better manage customer relationships, reported revenue of $76.3 million in the fourth quarter, Pegasystems said.

Chordiant’s clients, it said, will be able to incorporate Pegasystems’s process automation technology, while Pegasystems’ clients will be able to tap into Chordiant’s predictive decision management systems and customer relationship management software and services, the company said.

Pegasystems Inc. said it expects the acquisition to increase its adjusted earnings per share by “as much as” 3 cents per share in 2010 and 20 cents per share in 2011.

Shares of Chordiant Software Inc., rose $1.18, or 31 percent, to $4.99 in early trading.

Shares of Pegasystems rose $1.75, or 5 percent, to $38.58

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