In a further consolidation of the customer relationship management (CRM) space, Pegasystems on Tuesday agreed to acquire Chordiant Software for $161.5 million in cash. The deal is expected to close in the second quarter.
The acquisition looks like a steal for Pegasystems. Chordiant’s revenues totaled $76.3 million for the four quarters ended Dec. 31, and it made $52.3 million in cash and investments during the same period.
Chordiant works to optimize the customer experience to help global brands multiply customer lifetime value with its suite of “intelligent conversation management applications.” Chordiant’s software also helps brands measure the effectiveness of business strategies.
Building a Broader Portfolio
Best known for its Build for Change technology, Pegasystems was well-positioned to make a cash acquisition. The company has posted 10 consecutive quarters of record revenue. With the acquisition, Pegasystems adds Chordiant’s predictive decision-management solutions to the mix.
Alan Trefler, founder and CEO of Pegasystems, said the merger “creates a broader portfolio which will offer an expanded client base new capabilities to meet next-generation CRM needs.” Combined, the companies serve some of the world’s largest companies, including Barclays, HSBC and Orange.
“We expect that our customer base will welcome this news, and can look forward to the increased innovation that Pegasystems is known for, along with the many other benefits resulting from the mutual strengths and combined scale of our companies,” said Steven Springsteel, chairman, president and CEO of Chordiant.
As a result of the merger, the companies said, Chordiant clients can incorporate Pegasystems intent-driven process automation to drive a better customer experience, and Pegasystems clients can take advantage of Chordiant’s predictive decision-management solutions, CRM assets, and expertise in customer experience. The companies also plan to build an expanded partner network.
The CRM Competition
Chordiant gives Pegasystems more than just new technology — it gives the company a stronger focus on the financial-services…