Front office software vendor Siebel Systems Inc said Thursday that it will acquire OnTarget Inc for $259m in stock. OnTarget provides consulting and training services for sales and marketing organizations, which San Mateo, California-based Siebel will combine with its software to create a more comprehensive offering for its customers. The deal will provide customers with the unified strategy, methodology and software they tell us they need, CEO Tom Siebel said in a statement.
OnTarget claims to offer a suite of training programs and services designed to help clients develop multi-channel sales strategies and then assess their effectiveness. The two companies have worked together since 1996, integrating OnTarget’s target account selling methodology and content into Siebel’s CRM software and providing training to Siebel end users. More than 100,000 sales people have licensed the combined offering, the companies said.
Terms of the deal call for each outstanding share of OnTarget common stock to be exchanged for 0.31 of a Siebel common share. Siebel says that it will issue roughly 3.7 million shares to cover the purchase, valuing at just under $260, based on Siebel’s closing price on November 17. The deal will be accounted for as a tax-free pooling-of interests and is expected to close during the fourth quarter of this year.
After closing, OnTarget will operate as a wholly-owned subsidiary of Siebel and will continue to be based in Atlanta. OnTarget’s CEO Alston Gardner will assume the title of VP and general manager of the unit. รก
