Progress Software Acquires Savvion Inc. FAQs
1. What business is Savvion in?
Savvion is a pioneering and leading provider of Business Process Management (BPM) technology. The company offers a comprehensive, standards-based BPM suite that helps more than 300 of the world’s top-performing companies – including 24 of the ‘Fortune 100’ – automate and continuously improve critical business processes. Savvion also offers industry-specific BPM solutions having over 15 years of BPM market experience.
2. Why is Progress acquiring Savvion?
Progress Software is increasing its focus on delivering operational responsiveness for its customers with particular emphasis on business event processing, business process management, enterprise data services, business transaction management and application development platforms.
The Savvion BPM suite, in particular, was identified as a perfect fit for Progress Software because it offers market-leading functionality for business process modeling and execution. The BPM suite uniquely includes key capabilities integrated within the BPM Suite, including Business Rules Management System, Document Management System, an event engine and an analytics engine, all of which made Savvion an ideal acquisition for Progress Software.
In addition, the global reach, broad customer base, strong development capability and financial stability of Progress Software will provide greater opportunities for the Savvion BPM suite to scale much more rapidly.
3. What is Operational Responsiveness?
Operational responsiveness is the ability to respond to changing conditions and business interactions as they occur, enabling business leaders to capitalize on commercial opportunities, drive greater efficiencies in their organizations, and reduce risk.
Progress Software regards operational responsiveness as a business imperative and believes this acquisition enhances its ability to provide enterprises with the highest level of business visibility, responsiveness and business process improvement, coupled with the highest degree of data integrity and integration.
4. What products will the acquisition of Savvion add to the Progress portfolio?
All Savvion products will be added to the Progress product portfolio. Progress Software is committed to providing world-class products and support to Savvion customers with the security of a company that has global scale and stability. Progress plans to invest in accelerating product development based on Savvion’s product roadmaps. Progress is also committed to ensuring that Savvion’s BPM solutions continue their industry leadership
Savvion products include:
- BusinessManager
- Process Modeler
- Process Asset Management Server
- Business Expert
- Business Rules Management System
In addition, Savvion has developed powerful industry-specific solutions for financial services, communications, healthcare, life sciences, energy and manufacturing industries in which Progress already has a broad customer base that will benefit from these capabilities. Each Savvion solution features pre-built business processes and dashboards based on industry best practices. These solutions are proven to accelerate customer deployments with a high return on investment (ROI) and a low total cost of ownership (TCO)
5. What support can Savvion customers expect?
Progress will continue to support Savvion customers, using the current Savvion team while leveraging Progress’ worldwide resources.
6. Will Progress keep the Savvion company name or product names?
Savvion will be fully integrated into Progress Software, and will ultimately adopt the Progress Software company name. Progress expects to retain most Savvion product names; however, this will be reviewed over the months following the acquisition.
7. How does this acquisition impact Progress’ business outlook?
Progress Software is providing the following guidance, which reflects the anticipated impact from the acquisition of Savvion, for the fiscal year ending November 30, 2010:
- GAAP revenue is expected to be in the range of $538 million to $548 million.
- Revenue, on a non-GAAP basis, is expected to be in the range of $540 million to $550 million.
- GAAP diluted earnings per share are expected to be in the range of 93 cents to $1.23.
- On a non-GAAP basis, diluted earnings per share are expected to be in the range of $2.16 to $2.28.
Progress Software is providing the following guidance, which reflects the anticipated impact from the acquisition of Savvion, for the first fiscal quarter ending February 28, 2010:
- GAAP revenue is expected to be in the range of $124 million to $128 million.
- Revenue, on a non-GAAP basis, is expected to be in the range of $125 million to $129 million.
- GAAP diluted earnings per share are expected to be in the range of a loss of 20 cents to a loss of 1 cent.
- On a non-GAAP basis, diluted earnings per share are expected to be in the range of 44 cents to 46 cents.
The outlook for the non-GAAP amounts excludes the amortization of acquired intangibles, stock-based compensation, purchase accounting adjustments for deferred revenue, restructuring charges and acquisition-related expenses.
Legal Notice Regarding Non-GAAP Financial Information
The company provides non-GAAP revenue, operating income, net income and earnings per share as additional information for investors. These measures are not in accordance with, or an alternative to, generally accepted accounting principles in the United States (GAAP). Such measures are intended to supplement GAAP and may be different from non-GAAP measures used by other companies. The company believes that the non-GAAP results described in this release are useful for an understanding of its ongoing operations and provide additional detail and an alternative method of assessing its operating results. Management of the company uses these non-GAAP results to compare the company's performance to that of prior periods for analysis of trends and for budget and planning purposes. A reconciliation of non-GAAP adjustments to the company's GAAP financial results is included below.
Progress Software Corporation
Progress Software Corporation (NASDAQ: PRGS) is a global software company that enables enterprises to be operationally responsive to changing conditions and customer interactions as they occur – to capitalize on new opportunities, drive greater efficiencies and reduce risk. The company offers a comprehensive portfolio of best-in-class infrastructure software spanning event-driven visibility and real-time response, open integration, data access and integration, and application development and deployment – all supporting on-premises and SaaS/Cloud deployments. Progress maximizes the benefits of operational responsiveness while minimizing IT complexity and total cost of ownership. Progress can be reached at www.progress.com or +1-781-280-4000.
Safe Harbor Statement
Except for the historical information and discussions contained herein, statements contained in this release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which include statements regarding Progress Software’s business outlook and competitive position, involve a number of risks, uncertainties and other factors relating to the acquisition of Savvion that could cause actual results to differ materially, including but not limited to the following: the effects of disruption from the acquisition of Savvion making it more difficult to maintain relationships with employees, licensees, other business partners or governmental entities; other business effects, including the effects of industry, economic or political conditions outside of Progress Software's or Savvion’s control; transaction costs; actual or contingent liabilities; uncertainties as to whether anticipated synergies from the acquisition will be realized; and uncertainties as to whether Savvion’s business will be successfully integrated with Progress Software's business. In addition, Progress Software is subject to other risks, uncertainties and other factors, including the receipt and shipment of new orders; the timely release of enhancements to its products; the growth rates of certain market segments; the positioning of its products in those market segments; variations in the demand for professional services and technical support; pricing pressures and the competitive environment in the software industry; the continuing weakness in the U.S. and international economies, which could result in fewer sales of its products and may otherwise harm its business; business and consumer use of the Internet; the ability to penetrate international markets and manage its international operations; and changes in foreign currency exchange rates. Progress Software undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with the company's business, please refer to the company's filings with the Securities and Exchange Commission.
Progress and Savvion are trademarks or registered trademarks of Progress Software Corporation or one of its subsidiaries or affiliates in the U.S. and other countries. Any other trademarks contained herein are the property of their respective owners.
