SEBL--Monday August 7, 5:38 pm Eastern Time
Press Release
Siebel Systems, Inc. to Acquire OnLink Technologies, Inc.
Expands Leadership Role in eCommerce and Product Configuration Software
SAN MATEO, Calif.--(BUSINESS WIRE)--Aug. 7, 2000--Siebel Systems, Inc. (Nasdaq:SEBL - news), the world's leading supplier of eBusiness application software, today announced an agreement to acquire OnLink Technologies, Inc. OnLink's eCommerce software provides interactive guidance and tailored recommendations, dramatically improving the online buying experience. Siebel Systems intends to integrate OnLink's technology with Siebel eBusiness Applications, complementing and strengthening its position in eCommerce.
OnLink's technology complements and extends Siebel Systems' market leadership in interactive selling and product configuration software. Siebel eConfigurator and Siebel ePricer enable organizations to create accurate, complete, and correctly priced product and service configurations and automatically distribute them to appropriate sales and service channels. With OnLink's technology, Siebel Systems intends to enable organizations to engage online customers in a guided, interactive dialogue to determine their needs and then automatically match those needs to product and service configurations.
``eCommerce is an important component of multichannel eBusiness. But to effectively enhance and maintain their brands online, organizations must engage customers on a personal level, understand their needs, and recommend the right solution,'' said Thomas M. Siebel, chairman and CEO, Siebel Systems, Inc. ``This type of interactive selling and product configuration is not yet available on most eCommerce Web sites, but Siebel Systems intends to change that, and our acquisition of OnLink is part of that plan. Through this acquisition, Siebel Systems intends to set a new standard for eCommerce and product configuration.''
``This acquisition will enable OnLink's employees and customers to fulfill our common vision of creating eCommerce Web interactions where the customer is in control of the buying experience,'' said Buck French, president and CEO, OnLink Technologies, Inc. ``In order to offer guidance and advice to support online commerce, companies have generally been forced to cobble together incompatible tools from multiple vendors. As the clear leader in eBusiness applications, we believe that Siebel Systems is the vendor best positioned to lead the transition from custom-built Web sites to out-of-the-box, industrial strength eCommerce applications.''
Comprehensive eCommerce Products
OnLink products enable businesses to:
Deliver online customization of complex products, reducing sales expense while making it easy for customers or sales teams to decide on the ideal product configuration;
Replicate interaction between customers and a knowledgeable sales or support representative through a series of interactive and guided questions on the company Web site; and
Transform static Web-based product catalogs into intelligent, interactive eCatalogs, complete with personalized product recommendations, up-sells, cross-sells, and feature-based searching for higher customer satisfaction and increased orders.
Siebel Systems will integrate OnLink's technology with its complete set of eCommerce applications for interactive selling, marketing, customer service, and partner management over the Web. The resulting products are expected to provide the industry's most comprehensive eCommerce suite of applications, including interactive guidance and configuration capabilities from OnLink to enhance online sales and service, dynamic personalization of customer and partner interactions, dynamic pricing options for online auctions, and integrated product pricing and configuration.
In addition, Siebel Systems eCommerce products work within Siebel Systems' complete family of eBusiness applications that span all customer touch points, including the Web, call centers, field sales, and reseller channels. As a result, organizations can leverage a single source of customer information to provide customers with a consistent, personalized, and now more interactive buying and service experience across multiple channels.
OnLink's eCommerce applications provide a highly interactive user experience. This interactivity is provided by a unique, Web-based architecture that provides exceptionally fast performance, scalability, rapid deployment, low-cost maintenance, and integration flexibility. OnLink's technology enables eCommerce Web sites to interact with customers in response times imperceptible to the user. The result is a more interactive and satisfying customer experience that helps increase sales while building customer loyalty.
``Next generation eBusiness applications must address increasing demands and complexity between buyers and sellers on the Web,'' said David Yockelson, senior vice president, META Group. ``Therefore, companies must mimic the skills and behavior of their best customer-facing employees online. This acquisition addresses those requirements and extends Siebel Systems' eCommerce capabilities.''
OnLink customers include Global 2000 Companies including Snap-on, Avaya (soon to be spun-off from Lucent Technologies), Amdahl, Sony, Tellabs and 14 divisions of General Electric (GE).
General Electric is using OnLink applications on eCommerce Web sites to provide interactive, consultative guidance and generate individual, customized GE solutions focused on specific customer needs. ``As a customer of both Siebel Systems and OnLink, GE sees the potential for great synergy between these companies,'' said Keith Miller, senior vice president, General Electric Equity. ``GE puts our customers first in all that we do and both of these companies provide applications that help us do that.''
Under the terms of the agreement, each outstanding share of OnLink Technologies, Inc. common stock would be exchanged at a fixed exchange ratio of approximately 0.1648, for newly issued shares of common stock of Siebel Systems. All outstanding stock options of OnLink Technologies, Inc. would be assumed by Siebel Systems at the same exchange ratio. This would result in the issuance of up to 3,706,564 million additional shares of common stock of Siebel Systems, representing a total current market value of $609 million based on the closing price of common stock of Siebel Systems on August 7, 2000.
The transaction is expected to be accounted for as a pooling of interests, and to qualify as a tax-free reorganization. The acquisition is subject to the approval of OnLink Technologies, Inc.'s stockholders and appropriate government agencies, as well as the satisfaction of certain customary closing conditions. The transaction is expected to close in the third calendar quarter 2000.
About Siebel Systems
Siebel Systems, Inc. (Nasdaq:SEBL - news) is the world's leading provider of eBusiness applications software. Siebel Systems provides an integrated family of eBusiness application software enabling multichannel sales, marketing and customer service systems to be deployed over the Web, call centers, field, reseller channels, retail and dealer networks. Siebel Systems' sales and service facilities are located in more than 28 countries. For more information, please visit Siebel Systems' Web site at www.siebel.com
About OnLink
OnLink is a leading provider of eCommerce sales, marketing and service applications that dramatically improve customers' online experience. Built from the customer's perspective, the OnLink Commerce Suite transforms eCommerce interactions by enabling the customer decision process -- gathering customer requirements, providing consultative guidance and recommending valid solutions. OnLink empowers buyers to make informed choices that lead to greater satisfaction, while sellers can capture and learn from customer shopping behavior to increase marketing effectiveness. Global business-to-business eCommerce customers include Amdahl Corporation, Ariba, General Electric, INRANGE Technologies, Snap-on Inc., Sony of America and Tellabs. For more information about OnLink, visit onlink.com.
OnLink Technologies, Inc. recorded approximately $2.2 million in revenue in 1999, but had a net operating loss of approximately $10.6 million. In the first six months of 2000, OnLink Technologies, Inc. recorded approximately $4.7 million in revenue and a net operating loss of $13.4 million.
Note to Editors: Siebel is a trademark of Siebel Systems, Inc. and may be registered in certain jurisdictions. All other product and company names mentioned are the property of their respective owners and are mentioned for identification purposes only.
Except for the historical information contained herein, this press release contains forward-looking statements that involve risk or uncertainties. The success of the acquisition and future operating results of Siebel Systems may differ from the results discussed or forecasted in the forward-looking statements due to factors that include, but are not limited to, risks associated with acquisitions, such as the potential inability to satisfy the closing conditions for the acquisition, potential difficulties in the assimilation of operations, strategies, technologies, methodologies and products of the acquired company, the risk of loss of key personnel of the acquired company, diversion of management attention from other business concerns, business risks including the risk of variations in quarterly operating results, significant current and expected additional competition and the need to continue to expand product distribution and services offerings. Further information on potential factors that could affect the financial results of Siebel Systems are included in Siebel Systems' Report on Form 10-K for the year ended December 31, 1999 and its other filings with the Securities and Exchange Commission. |
