COMPANY PRESS RELEASE: Netegrity the leading provider of solutions for securely managing e-business relationships, today announced that it has completed the acquisition of DataChannel, a leading provider of enterprise portal solutions. With this acquisition, Netegrity adds the Netegrity Interaction Server to its product line, the first step in delivering its Secure Relationship Management (SRM) platform.
The SRM platform will enable customers to quickly and easily deliver scalable interactive e-business portals by providing a platform of shared services for access control, single sign-on, identity management, portal, and provisioning services. Netegrity also announced that it has created a new organizational structure to optimize the execution of its SRM strategy.
Our customers are looking to transform customer, partner, and employee connections into rich, interactive on-line relationships. As they embark on these efforts, it has become very clear that the constraints of existing departmental portal technologies do not allow them to grow and meet the needs of expanding user communities, said Barry Bycoff, Chairman, President, and CEO. With this acquisition, Netegrity is enabling companies to immediately transform their portal initiatives into secure and scalable meta-portals.
The purchase price for the acquisition was $15 million in cash and 2.5 million in Netegrity shares. Netegrity expects this transaction to contribute sales of approximately $20 million in 2002. The transaction is expected to be accretive to earnings per share before amortization of intangibles beginning in Q2 2002.
With the acquisition, Netegrity has created two new business units in order to optimize execution of its SRM strategy, while maintaining focus on the individual products that comprise the SRM platform.
Access Control and Identity Management Business Unit- This business unit will oversee all of the engineering, product management, and product marketing for Netegrity SiteMinder® and Netegrity Delegated Management Services products. Bill Bartow, previously Netegrity’s vice president of marketing, will become the general manager and vice president of this business unit.
Portal Services Business Unit- This business unit will oversee all of the engineering, product management, and product marketing for the Netegrity Interaction Server. The Netegrity Interaction Server enables companies to significantly cut costs, improve information sharing, and achieve unprecedented productivity gains by providing the ease of use administrators and end-users require, with state-of-the-art design tools that true enterprise portal developers demand. Carla Corkern, previously DataChannel’s vice president of professional services and training, will become the general manager and vice president of this business unit. Prior to joining DataChannel, Corkern was the president and co-founder of ISOGEN International, a full-service consulting, systems-integration, training and third party product provider.
In addition, Deepak Taneja has been named Chief Technology Officer. Formerly vice president of engineering, Taneja will drive technology strategy for Netegrity, including the definition of product architecture and integration plans for the SRM platform.
Netegrity also recently hired Tim Dempsey. As the vice president of marketing, Dempsey will be responsible for a centralized marketing department that will oversee the marketing activities for the entire Netegrity SRM platform. Prior to joining Netegrity, Dempsey was vice president of marketing at Bowstreet.
Netegrity will also maintain a centralized, worldwide sales team led by Tom Palka, vice president of worldwide sales and a centralized business development organization led by Jim Rosen, vice president of business development.