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