Siebel has closed its acquisition of edocs, a provider of eBilling and customer self-service software solutions.
Under the terms of the deal, Siebel will initially pay $115 million in cash to edocs shareholders. Additional payments, based on achieving revenue and other contractual milestones, may be paid in 2006.
Excluding the impact of a one-time merger-related charge, the company expects the transaction will reduce Q1 2005 earnings by approximately $0.01 per share. Additionally, the company currently expects a one-time charge in Q1 2005 estimated at $8-10 million, although the company is still completing its asset allocation analysis and this estimate is subject to change.
Siebel says it plans to integrate its CRM solutions with edocs' customer service and eBilling applications to produce self-service solutions. The acquisition also extends Siebel's current eService solution to include market-leading eBilling functionality, helping companies achieve immediate cost savings while offering a richer self-service experience to their customers.
"The complementary strengths of Siebel and edocs will enable our customers to capitalise on the tremendous value of customer self-service applications," said Siebel CEO Michael Lawrie "These applications have become a vital component of many companies' channel strategies because they guide customers to the lowest cost, most appropriate channel for each interaction, thereby delivering a superior customer experience at a dramatically reduced cost. The growth of self-service applications is a clear front-office trend, and with the closing of this acquisition we are capitalizing on this growth opportunity."