IT Scan

December 10, 2003
Concerto Software bullish on Indian operations

NEW DELHI -- Concerto Software Inc., a leading provider of customer interaction management (CIM) solutions, recently announced plans for strengthening its India operations. It also declared having won 20 new customers in India over the last one year and raked in revenues of approximately US $5 million. These figures show a growth of approximately 50 percent, which is almost double the industry growth rate of 27 percent as predicted by Frost & Sullivan.

Concerto has over 70 customers in India, including Wipro Spectramind, Essar, Teletech India, Global Telesystem, HCL Eserve, Daksh eServices, Globalvantedge, NIIT Smartserve, Colwell & Salmon, ICICI One Source, Hinduja TMT, Transworks, Sanchez Capital, Zenta, Respondez, Prolease, and Infowavz.

Speaking at a teleconference, James D. Foy, president and CEO, Concerto Software, said: "India is one of the most crucial markets for Concerto and has immense potential. We see a very strong opportunity for further growth in this region and will be making significant investments and strengthen our relationships with our distribution partners so that India clearly emerges as the hub for the Asia Pacific region."

Concerto also announced that it entered into an agreement and plan of merger with Melita International, Ltd., a leading provider of products and services focused on maximising contact center effectiveness. This merger, likely to be completed by early next year, will see Concerto having revenues of US $150 million, up from US $99.5 million in 2002. The customer base of the merged entity will be 1,800, up from the present 1,200, and the worldwide employee strength will also see a 50 percent rise.

Under the terms of the merger agreement, Concerto will combine with Melita. The combined company will operate under the name of Concerto Software Inc. Except for certain shares held by certain officers and a director of Concerto Software, which will be exchanged for a minority equity interest in the new company, all of Concerto Software’s outstanding shares will be purchased for $12 per share in cash. Golden Gate Capital and Oak Investment Partners, both private equity investment firms and majority owners of Melita, are providing the financing for the transaction.

Concerto has already received notice of early termination of the Hart-Scott-Rodino antitrust waiting period regarding the proposed merger, which remains subject to other customary closing conditions, including the securing of other regulatory approvals and approval by stockholders of Concerto.

Because of the merger, Concerto Software, Inc. will strengthen its presence in the global CIM market and provide significant benefits to its worldwide customer base. The combined company will deliver expanded professional services, have increased direct and indirect sales reach, provide a wider array of solutions, and broaden its support infrastructure through centers of excellence throughout the Americas, Europe and Asia Pacific. Until the completion of the merger, the two companies will continue to operate as independent entities and remain committed to supporting and further evolving all of their respective contact center solutions.

Alpa Shah, vice president, Frost & Sullivan, said: "We believe the merger will have a positive impact on Concerto Software and Melita International, as well as on the industry as a whole. The global synergies and product expansion resulting from this merger further solidifies Concerto's position in the worldwide outbound dialing market. In addition, the momentum that Concerto has shown with EnsemblePro, its unified platform, is evidence that the company is becoming a viable contender in the large and growing inbound CIM market."

Jim Foy, president and CEO, Concerto Software, will remain in that position following the merger. George Landgrebe, president and CEO of Melita will assume the role of executive vice president of worldwide customer support of Concerto Software.

Foy noted: "With a broader base of customers and solutions, greater technology expertise, expanded services capabilities and broader distribution channels that will result from the merger, we believe Concerto will compete against the larger companies in inbound and outbound sectors of the CIM market. Melita's strong performance in first quarter of operations proves it has world class solutions, first class employees and loyal customers. The knowledge, skills, and abilities of our employees from both organisations remain key to our future success. The new company will emerge better equipped to provide customers with the most appropriate solutions to meet its business needs."

George Landgrebe, president and CEO of Melita, added: "Pooling our knowledge, experience and technology, we can deliver unique value to our customers. We are in the business of ensuring customers receive the world class support, service and the contact center solutions they require today, while helping them prepare for the future as their business evolves. Our continued commitment to the support and development of the companies’ key products, including Conversations and Unison, will remain solid through the merger and beyond."

Contact:
Concerto Software
www.concerto.com