CORRECTING AND REPLACING Synygy Creates Spin-Off Company Focused on Providing Services to the Pharmaceutical Industry; Announces First Step in Plans to Raise $50 Million in Growth Capital.Business Editors/High-Tech Writers CORRECTION...by Synygy Inc. CONSHOHOCKEN, Pa.--(BUSINESS WIRE)--Oct. 7, 2003 In BW5156 issued Oct. 7, 2003: Please replace the release with the following corrected version. The corrected release reads: SYNYGY CREATES SPIN-OFF The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. COMPANY FOCUSED ON PROVIDING SERVICES TO THE PHARMACEUTICAL INDUSTRY; ANNOUNCES FIRST STEP IN PLANS TO RAISE $50 MILLION IN GROWTH CAPITAL Synygy Inc., provider of software and services for creating performance-driven organizations, today announced it had formed a new subsidiary that is wholly owned by Synygy, Inc. and Synygy shareholders. The new subsidiary, known as Synygy Pharma LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , provides services exclusively to pharmaceutical and biotech bi·o·tech n. Informal Biotechnology. biotech Noun short for biotechnology Noun 1. companies. Synygy's contracts with its 26 pharmaceutical and biotech clients, including Wyeth, Pfizer, Schering-Plough, Roche, Lilly, Aventis, and Amersham, to provide Enterprise Incentive Management (EIM EIM Enterprise Incentive Management EIM Enterprise Information Management EIM Enterprise Identity Mapping (IBM) EIM Enterprise Instant Messaging EIM Employee Internet Management EIM European Institute for the Media ) and other solutions have been assigned to Synygy Pharma. Synygy Pharma LLC currently has 110 employees based in Philadelphia and Phoenix, has $25 million in revenue, and is profitable. "With a 50% share of the pharmaceutical EIM marketplace, the highly focused Synygy Pharma subsidiary will use its twelve years of experience and its excellent reputation in the industry to accelerate growth plans and deliver expanded performance management solutions to this marketplace," said Mark A. Stiffler, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Synygy. "Creating Synygy Pharma frees Synygy to focus on creating new software products and building new reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. , implementation, and service delivery partnerships. Synygy Pharma is now one of these partners." Synygy Pharma has executed a five-year software licensing agreement with Synygy that allows Synygy Pharma to use Synygy software to provide incentive compensation and performance management solutions to pharmaceutical and biotech companies. Three main goals Synygy has three primary goals in creating Synygy Pharma: providing new pharmaceutical-focused solutions to accelerate growth of Synygy Pharma, increasing Synygy's software licensing revenue through its partnership with Synygy Pharma, and using Synygy Pharma as a vehicle to raise capital for Synygy. To accelerate growth of Synygy Pharma, the company has rolled out specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. solutions unique to the pharmaceutical industry, including implementing and administering incentive compensation plans, setting and managing sales quotas, doing sales territory alignments, setting and managing company objectives and workforce goals, and administering workforce performance reviews. These solutions build on the incentive compensation and analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. solutions for which Synygy is well known and expand Synygy's offerings both in the sales organization and more broadly to the general pharmaceutical workforce. To increase Synygy's software licensing revenue, Synygy is implementing its strategy to create partnerships with service-oriented companies that resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. Synygy software, provide software implementation, maintenance, and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services , and license Synygy software to provide outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. and other services. The move allows Synygy to focus more of its efforts on developing and expanding its line of performance management software. The majority of Synygy's incentive compensation plan management outsourcing business was delivered to its pharmaceutical clients, and Synygy Pharma is now one of Synygy's new service-oriented partners. To raise capital for Synygy, Synygy is actively seeking financial and strategic investors in Synygy Pharma. The first step in Synygy's plan to raise $50 million of growth capital has been completed with the closing of an undisclosed amount of financing provided to Synygy Pharma by Eureka Growth Capital. This capital is being used to expand Synygy's software development, sales, and marketing efforts. Synygy will remain a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. that is owned exclusively by Synygy employees. About Eureka Growth Capital Eureka Growth Capital, a Berwind sponsored fund headquartered in Philadelphia, provides subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and preferred equity capital for expansion, recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. and support of management or sponsored-led buyouts of companies experiencing significant growth. Eureka Growth Capital leverages the vast resources of its affiliate, Berwind, a global, privately held organization consisting of a diversified diversified (di·verˑ·s group of owned businesses generating annual revenues of $2.5 billion. About Synygy Pharma Synygy Pharma LLC provides performance and incentive compensation management solutions to the pharmaceutical and biotech industries. These solutions include implementing and administering incentive compensation plans, setting and managing sales quotas, doing sales territory alignments, setting and managing company objectives and workforce goals, and administering workforce performance reviews. Synygy Pharma is a reseller of Synygy software, a Synygy software implementation partner, and a provider of outsourcing and other services that leverage Synygy software. About Synygy Synygy, Inc. provides software and services for creating performance-driven organizations. Synygy solutions enable companies to better execute their strategies by "operationalizing" how they define performance, reward success, and deliver results. Synygy's award-winning Enterprise Incentive Management (EIM) solutions have been proven by independent study to pay for themselves in eight to nine months. Synygy EIM was also recently picked as the top-ranked EIM product in HR.com's 2003 Buyer's Guide to EIM. Based in suburban Philadelphia, Synygy's success and sustained growth were recognized when Synygy was named to the Inc. 500 Hall of Fame, reflecting Synygy's fifth consecutive inclusion on the Inc. 500. Synygy is a registered trademark and Synygy Pharma, Synygy Enterprise Incentive Management, Synygy EIM, and "Performance Defined. Results Delivered." are trademarks of Synygy, Inc. All other trademarks are trademarks or registered trademarks of their respective owners. |
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