Sopheon Announces Agreement to Acquire Alignent Software.Transaction Will Broaden Company's Leadership as Provider of Strategic Business Solutions for Product Life Cycle Management and Accelerate Expansion into Aerospace, Defense and High-Tech Markets MINNEAPOLIS & LONDON -- Sopheon, the international software and services company, announced today that it has signed a definitive agreement to acquire Alignent Software Inc. The cash-based transaction is expected to be completed on or about June 18, 2007. Based in California, Alignent is one of only a few suppliers worldwide that specializes in the provision of advanced product and technology roadmapping software for complex global companies. Alignent's flagship offering, Vision Strategist strat·e·gist n. One who is skilled in strategy. Noun 1. strategist - an expert in strategy (especially in warfare) strategian market strategist - someone skilled in planning marketing campaigns , is generally recognized as the leading application of its kind. The software has a proven track record of helping large organizations improve strategic innovation planning. Some of the foremost aerospace, defense and high-tech companies in the world, including Boeing, BAE Systems BAE Systems British manufacturer of aircraft, missiles, avionics, naval vessels, and other aerospace and defense products. BAE Systems was formed (1999) from the merger of British Aerospace (BAe) with Marconi Electronic Systems. , Corning, Honeywell, Lockheed Martin For the former company, see . Lockheed Martin (NYSE: LMT) is a leading multinational aerospace manufacturer and advanced technology company formed in 1995 by the merger of Lockheed Corporation with Martin Marietta. , Motorola and NAVAIR NAVAIR Naval Air Systems Command have adopted Alignent's offering as their product planning Product Planning is the ongoing process of identifying and articulating market requirements that define a product’s feature set. See also
Alignent's roadmapping software is an ideal complement to Sopheon's existing product innovation process and portfolio management system. Vision Strategist allows the user to visualize and predict how external market and technology trends will impact product plans over time, enabling better decisions on future product direction. A principal advantage of the software is that it improves cross-functional communication and collaboration throughout the planning process. Sopheon's Accolade([R]) software enhances the execution of product plans by automating innovation process governance. Although the two applications will continue to be marketed separately, together they will constitute industry's first end-to-end strategic product planning software suite. The acquisition of Alignent will immediately expand Sopheon's business in two areas. First, for the company's nearly 100 existing clients in chemical and consumer packaged goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one markets, it will extend Sopheon's solution to include strategic product planning. Secondly, Alignent's roster of industry-leading customers will give Sopheon instant credibility in a range of new markets, accelerating its entry into aerospace, defense and high-tech. Sopheon estimates that the acquisition will advance its product plans for Accolade by a full two years. It will also result in a substantial increase in the size of Sopheon's customer base. Initial feedback indicates that Sopheon can expect to achieve significant organic growth by selling its Accolade solution to existing Alignent clients challenged with improving innovation process governance. Sopheon expects to begin offering Accolade's product portfolio management capabilities to Alignent customers this summer. "Our acquisition of Alignent represents significant strategic value to Sopheon," said Barry Mence, Sopheon's chairman. "It will help us deepen our penetration in the chemicals and consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and markets we currently target, while accelerating our expansion into new markets such as aerospace, defense and high-tech, which offer great upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside growth potential. We expect substantial near- and long-term revenue benefits from the transaction, as well as enhanced earnings on an ongoing basis. This is a very positive move for our company, for our clients and for our shareholders." "Sopheon has already established strong market position as the premier provider of software applications for governance of the innovation process," said Dennis Clerke, chief executive officer of Alignent. "The addition of Alignent's products, people and partners will enable Sopheon to deliver an unmatched set of strategic product planning and execution solutions to business and R&D decision makers. This is an exciting development that will yield significant benefits not only to Alignent's customers, but to global manufacturers in all sectors of industry." Alignent reported revenues of $3 million and a $4.3 million net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. for 2006. Completion of the transaction is contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent the receipt of consents from Alignent shareholders and the delivery of ancillary agreements and formalities for·mal·i·ty n. pl. for·mal·i·ties 1. The quality or condition of being formal. 2. Rigorous or ceremonious adherence to established forms, rules, or customs. 3. . Gross consideration for the acquisition amounts to $5.5 million, including $4.75 million initially upon closing and an additional $750 thousand in potential earn-out payments. Sopheon expects the Alignent business to make a positive EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become contribution from the first year following the purchase. Accolade([R]) is a registered trademark of Sopheon plc. All other trademarks and registered trademarks are the sole property of their respective owners. About Alignent Software Alignent software company supports the powerful process of roadmapping. Alignent's solutions dynamically connect product and technology planning across the company, empowering organizations to visualize, manage and communicate future directions within a single system. Alignent focuses R&D efforts, fosters cross-functional collaboration and aligns people around a unified plan of record that adapts in real-time to empower accurate, timely business decisions. The world's most sophisticated product and technology planners rely on Alignent, including BAE Systems, Corning, Honeywell, Lockheed Martin, Medtronic, Motorola, Philips, Textron, the U.S. Air Force and the U.S. Navy. For more information, please visit www.alignent.com. About Sopheon Sopheon (LSE LSE - Language Sensitive Editor :SPE SPE - Software Practice and Experience ) is an international provider of software and services that help organizations improve the business impact of product innovation. Sopheon's Accolade system automates and governs the innovation process, enabling companies to increase revenue and profits from new products. Sopheon is listed on the AIM Market of the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. and on the Euronext in the Netherlands. For more information, please visit www.sopheon.com. |
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