Onyx Software has walked away from its hostile bid to take over Pivotal, but says it will seek to take over its rivals customers instead.
Onyx said in a statement that although it ``continues to believe that its proposal to acquire Pivotal was superior to all public offers, the proposal has been withdrawn given the low probability that that offer can be successful.”
“It is unfortunate that Pivotal denied their shareholders the opportunity to pursue the Onyx acquisition proposal that many industry observers saw as a superior offer for shareholders and good for the industry,” Brent Frei, CEO of Onyx Software, before announcing a migration programme targetted at stealing Pivotal customers.
Onyx is offering to exchange Pivotal software licences for licenses of Onyx Enterprise CRM 4.5, which it calls a “proven, feature-rich, fourth-generation, Internet-architected CRM platform.”
Pivotal rejected the Onyx bid, but has now said that another takeover bid put forward last month by Chinadotcom Corp., worth $2 a share in cash or a total of about $50-million, is a “superior transaction” to its originally planned merger with Talisima.
Venture capitalists Oak, which is driving through the merger with Talisima, has until Thursday to at least match the Chinadotcom (CDC) proposal.
But Gartner Group has warned Pivotal customers to be wary of a future under CDC. Analysts there warned clients: "Gartner believes that customers and prospects outside of China should be concerned about how the potential acquisition of Pivotal by CDC will affect future product development.
"CDC will likely leverage functionality and any transferable intellectual property and development resources to initially focus on the China market, potentially at the expense of CDC’s acquired entities’ traditional home markets. Gartner recommends that Pivotal customers review contracts that include product improvements and negotiate specific delivery dates for new versions.
They concluded: "Gartner believes that the Oak Investment offer remains the best option for Pivotal because it reinforces, rather than changes, Pivotal’s direction."