Sales force automation specialist Siebel Systems Inc is to pay $460m to acquire Scopus Technology Inc in a move that will create the world’s largest sales and services information systems provider, according to Siebel. The combined company will be known as Siebel Systems, operating out of Siebel’s premises in San Mateo, California, although the Scopus customer service, field service and call center business on Emeryville, California will be retained. The merged organization will employ 900 staff and have 500 customers across the world. Siebel, which has been called the Peoplesoft of front-end software has been traditionally strongest in the sales force automation market, while Scopus has concentrated on the customer services and call center market. The combined entity will compete with the likes of Vantive Corp and Clarify Inc. But larger players such as Baan NV and SAP AG are showing increased interest in sales force automation and customer service front-end applications. Last year Baan spent $250m on customer management software house Aurum Software Corp (CI No 3,160), SAP took a 50% stake in sales force automation firm Kiefer & Veittinger GmbH (CI No 3,315) and IBM Corp bought Software Artistry Inc for its help desk software (CI No 3,316). This week, Oracle Corp is set to unveil its own market contender, Oracle Front Office, at the same trade show in Chicago where Siebel itself is set to launch its next generation, Siebel 98 sales automation software suite. Last year, Siebel spent $11m to acquire pharmaceutical vertical market company Nomadic Systems Inc, and $15m on business intelligence software house InterActive Workplace Inc. Its revenues last year were up 203% to $118.8m, and Scopus should take that figure up to around $207m. Compaq Computer Corp is both a user and reseller of Siebel’s software, and there are rumors of a similar Microsoft Corp deal to be announced shortly. Meanwhile, Scopus recently canceled plans for a $90m acquisition of its own, in the shape of CWC Inc (CI No 3,322) – it wanted CWC for its sales automation technology. Forrester Research says the sales, marketing and customer services systems market was worth $1bn in 1997, and is set to grow at an annual compound rate of 54% to the year 2000, when it will be worth $3.5bn. The call center market is currently sized at around $5.5bn. The deal calls for Siebel to exchange each outstanding Scopus share for Siebel shares at a rate of .36405, and is expected to close some time in the second quarter. á
