Sopheon Announces Agreement to Acquire Alignent Software

11 Jun 2007 14:30

Sopheon, the international software and services company,announced today that it has signed a definitive agreement to acquireAlignent Software Inc. The cash-based transaction is expected to becompleted on or about June 18, 2007. £ Based in California, Alignent is one of only a few suppliersworldwide that specializes in the provision of advanced product andtechnology roadmapping software for complex global companies.Alignent's flagship offering, Vision Strategist, is generallyrecognized as the leading application of its kind. The software has aproven track record of helping large organizations improve strategicinnovation planning. Some of the foremost aerospace, defense andhigh-tech companies in the world, including Boeing, BAE Systems,Corning, Honeywell, Lockheed Martin, Motorola and NAVAIR have adoptedAlignent's offering as their product planning solution. £ Alignent's roadmapping software is an ideal complement toSopheon's existing product innovation process and portfolio managementsystem. Vision Strategist allows the user to visualize and predict howexternal market and technology trends will impact product plans overtime, enabling better decisions on future product direction. Aprincipal advantage of the software is that it improvescross-functional communication and collaboration throughout theplanning process. Sopheon's Accolade(R) software enhances theexecution of product plans by automating innovation processgovernance. Although the two applications will continue to be marketedseparately, together they will constitute industry's first end-to-endstrategic product planning software suite. £ The acquisition of Alignent will immediately expand Sopheon'sbusiness in two areas. First, for the company's nearly 100 existingclients in chemical and consumer packaged goods markets, it willextend Sopheon's solution to include strategic product planning.Secondly, Alignent's roster of industry-leading customers will giveSopheon instant credibility in a range of new markets, acceleratingits entry into aerospace, defense and high-tech. £ Sopheon estimates that the acquisition will advance its productplans for Accolade by a full two years. It will also result in asubstantial increase in the size of Sopheon's customer base. Initialfeedback indicates that Sopheon can expect to achieve significantorganic growth by selling its Accolade solution to existing Alignentclients challenged with improving innovation process governance.Sopheon expects to begin offering Accolade's product portfoliomanagement capabilities to Alignent customers this summer. £ "Our acquisition of Alignent represents significant strategicvalue to Sopheon," said Barry Mence, Sopheon's chairman. "It will helpus deepen our penetration in the chemicals and consumer goods marketswe currently target, while accelerating our expansion into new marketssuch as aerospace, defense and high-tech, which offer great upsidegrowth potential. We expect substantial near- and long-term revenuebenefits from the transaction, as well as enhanced earnings on anongoing basis. This is a very positive move for our company, for ourclients and for our shareholders." £ "Sopheon has already established strong market position as thepremier provider of software applications for governance of theinnovation process," said Dennis Clerke, chief executive officer ofAlignent. "The addition of Alignent's products, people and partnerswill enable Sopheon to deliver an unmatched set of strategic productplanning and execution solutions to business and R&D decision makers.This is an exciting development that will yield significant benefitsnot only to Alignent's customers, but to global manufacturers in allsectors of industry." £ Alignent reported revenues of $3 million and a $4.3 million netoperating loss for 2006. Completion of the transaction is contingentupon the receipt of consents from Alignent shareholders and thedelivery of ancillary agreements and formalities. Gross considerationfor the acquisition amounts to $5.5 million, including $4.75 millioninitially upon closing and an additional $750 thousand in potentialearn-out payments. Sopheon expects the Alignent business to make apositive EBITDA contribution from the first year following thepurchase. £ Accolade(R) is a registered trademark of Sopheon plc. £ All other trademarks and registered trademarks are the soleproperty of their respective owners. £ About Alignent Software £ Alignent software company supports the powerful process ofroadmapping. Alignent's solutions dynamically connect product andtechnology planning across the company, empowering organizations tovisualize, manage and communicate future directions within a singlesystem. Alignent focuses R&D efforts, fosters cross-functionalcollaboration and aligns people around a unified plan of record thatadapts in real-time to empower accurate, timely business decisions.The world's most sophisticated product and technology planners rely onAlignent, 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:SPE) is an international provider of software andservices that help organizations improve the business impact ofproduct innovation. Sopheon's Accolade system automates and governsthe innovation process, enabling companies to increase revenue andprofits from new products. Sopheon is listed on the AIM Market of theLondon Stock Exchange and on the Euronext in the Netherlands. For moreinformation, please visit www.sopheon.com. Copyright Business Wire 2007