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Technology Stocks : Vantive Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Trader Dave who wrote (2847)	4/6/1999 6:30:00 PM
From: vinod Khurana	Read Replies (1) \| Respond to of 3033

FOCUS-Lucent to buy Mosaix for about $145 million (combines takes, adds details in graphs 2,5-6,11-13 updates stock prices) NEW YORK, April 5 (Reuters) - Lucent Technologies Inc., the world's largest telecommunications equipment maker, said on Monday it agreed to buy Mosaix Inc. (Nasdaq:MOSX - news), which provides customer service management software, for $145 million in stock. The acquisition will allow Lucent (NYSE:LU - news) to move into the fast-growing area of ''customer relationship'' management and to expand its portfolio of products that cater to companies using telephone customer service representatives. Mosaix's software creates a record of customer transactions, preferences and buying patterns. It allows customer service representatives to respond more quickly and effectively to clients and stimulate more business by promoting special products based on buying patterns that have been identified. ''As businesses seek the most effective ways to attract and retain customers, they're relying more and more on intelligent software,'' said Janice Anderson, Lucent Customer Care Solutions vice president. ''Mosaix and its ... people are a great addition to our business and a great investment for Lucent's future.'' Mosaix's team of consultants, who are experts in customer relationship management and customer care, also will allow Lucent to build on its consulting business throughout the world. Lucent estimates the global market for customer relationship management products, including software, systems and services, is currently $11 billion and is growing at 27 percent annually. Under the deal, each share of Redmond, Wash.-based Mosaix will be converted into 0.1927 shares of Lucent or about $10.77 per share. Mosaix also said it will terminate its stock repurchase program and will reissue about 2.8 million common shares either through a private placement or public offering. The purchase price, which is based on Lucent's closing stock price on April 1, represents a 27 percent premium for Mosaix's stock. Shares of Mosaix jumped $2.56 to $10.94 in early trading on Nasdaq. Shares of Lucent, the second most active stock on the New York Stock Exchange, gained $2.25 to $58 on the Murray Hill, N.J.-based Lucent expects the deal, which is expected to close in the quarter ending June 30, 1999, to have no effect on its profits in fiscal 1999 but slightly boost profits in fiscal 2000. Mosiax competes in the customer relationship management market against companies such as Siebel Systems Inc. (Nasdaq:SEBL - news), International Business Machines Corp. (NYSE:IBM - news) and Vantive Corp. (Nasdaq:VNTV - news). Mosaix employs about 550 people, and has more than 1,000 business customers using its software, systems and services solutions in the United States, Canada, Europe, Asia, Africa and South America. The deal is subject to the approval of Mosaix shareholders and regulatory conditions. -------------------------------------------------------------------------------- More