RealTime IT News

Selectica Buy Will Help Customers Comply

In a merger of business-to-business software makers, Selectica will buy I-many for $70 million cash, the companies announced this morning.

The deal will merge Selectica's software for managing complex pricing structures with I-many's contract and regulatory compliance applications.

Among the tasks handled by the melded offering will be: configuration, price execution, quote management, contract management, contract compliance, regulatory compliance, revenue management and prescriptive analytics.

In addition to complementary technology, San Jose, Calif.-based Selectica gains more than 280 customers, many of them, like Eli Lilly and GlaxoSmithKline, in the booming life sciences industry.

"[I-many's] position in the life sciences market, where they have 22 of 25 top companies, is particularly impressive," Selectica CEO Vince Ostrosky said during a conference call with reporters and analysts.

A. Leigh Powell, I-many's chairman and CEO, will move to a new role as president of the merged company's life sciences division. The majority of the Edison, N.J.-based company's management team will stay on after the merger closes during the first quarter of 2005.

Selectica will also target other markets, including manufacturing, life sciences, telecommunications, consumer packaged goods, food and beverage, retail and financial Services.

There will be cost savings from the merger from consolidating facilities and workforces; however details won't be available until Selectica completes a proxy filing with the Securities and Exchange Commission (SEC).

Analysts at AMR Research said there currently are no "out-of-the-box, cross-industry solutions" to handle all the tasks envisioned by the combined product.

"As a result, a combined offering will be very compelling for sales and compliance managers to improve contract-oriented sales processes when the combined company delivers the integration of the two products," Laura Preslan, an AMR research director, said in a statement.