Las Vegas, Nevada is hosting Jiveworld, the summit for collaboration software provider Jive, and day one started with a bombshell as the company announced plans to merge with Texas-based Aurea Software for $462m in cash.
The complicated deal will, ultimately, take Jive into private equity ownership under Austin, Texas-based ESW Capital, which owns Aurea Software. Aurea offers a "customer experience software suite" based on a series of smaller acquisitions masterminded by ESW.
Jive, which offers community building and back-end intranet software, only announced its first operating profits of $3m last year.
"As the leader of the enterprise collaboration category, Jive has pushed the boundaries in how people work together for the past 16 years," said Jive CEO Elisa Steele.
She continued: "It's this focus and vision that has enabled us to deliver industry-leading product innovation, attract a top-notch customer base with recognised global brands and achieve record earnings and profitability in the last announced quarter.
"With Jive and Aurea coming together, we can deliver the superior end-to-end employee and customer experience companies require in today's digital landscape," she claimed.
Jive offers software and services to a host of blue-chip companies both, inside and outside the tech sector. I
t will continue to be run as a separate business with its own roadmap, as part of Aurea's existing offerings which, it says ‘enable companies to build, execute, monitor and optimise the end-to-end customer journey across a diverse range of industries'.
"Jive, in combination with Aurea, enables us to bring customer experience and employee and customer engagement together. We look forward to helping Jive clients get the maximum value out of their investment with Jive," said Aurea CEO Scott Brighton.
Jive is currently listed on the Nasdaq Stock Exchange, but will be removed following a unanimous board agreement to accept the takeover, and shareholders will be offered existing shares at a 20 per cent premium over recent performance.
The acquisition at $462m will probably not please shareholders who bought in when the company's stock was trading at $28 - compared to the $5.25 that ESW is paying. It is also down on the $708.8m that the company was valued at when it floated in 2011.
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