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Jacada Sells Its Application Modernization Business

Posted on: Friday, 21 December 2007, 09:00 CST

Israel-based contact center productivity solutions provider Jacada has announced the sale of its application modernization business to Germany-based Software AG for $26 million to focus on call center solutions business.

The company will sell the intellectual property and related customer contracts associated with its products, including Jacada Terminal Emulator, Interface Server and Integrator, which is also known as Jacada HostFuse. Software AG will also acquire select resources for the continued support, development and service delivery around these products and customer contracts.

Under the terms of the transaction, Jacada will retain the right to develop, market, sell and support Interface Server and HostFuse in support of its call center solutions business. It will also maintain the intellectual property rights for Jacada WorkSpace and Jacada WinFuse and all rights to the Jacada brand and trademark.

"This transaction marks a major milestone in the transformation of Jacada and positions us to enter 2008 with a singular focus on our call center solutions business," said Paul Callaghan, president at Jacada. "During the past 3 years, our call center solutions business has grown at a CAGR of 61% and represents 95% of our $12.9 million backlog as of September 30, 2007. We expect that the growth we have seen in this business will continue at a similar pace throughout 2008. Our growing list of new customers and partners validates the market's need for and acceptance of our unified desktop and process automation solutions. We are excited to be in the position to capitalize on this new, high growth market."

"We believe the excellent products and talented staff will be a tremendous complement to Software AG's portfolio. Modernization is just the first step in insuring that legacy applications play a full and productive roll in today's flexible IT infrastructures. We know that Jacada customers will benefit from our technology vision and continued product innovation," said Karl-Heinz Streibich, chief executive at Software AG.

After the sale, eight of Jacada's R&D and support staff will join Software AG enabling continuous product development and customer support. Also Software AG will gain over 200 enterprise customers, mostly in the US. According to Software AG, the application modernization business will extend the value of custom applications by making their existing functionality and data available via the web, within a service-oriented architecture (SOA) or as part of an end-to-end business process.

In June 2007, Software AG acquired a business integration and optimization software company webMethods for $546 million to strengthen its product portfolio. Software AG claimed that the acquisition was a major step towards its stated goal of doubling revenue to E1 billion by 2011.

Source: ComputerWire daily updates

Source: Datamonitor

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