SOURCE: Agistics

November 15, 2005 11:00 ET

Agistics Launches New Software as a Service Company

Former Executives From PeopleSoft, Williams Sonoma Secure Series A Funding From ATA Ventures

PLEASANTON, CA -- (MARKET WIRE) -- November 15, 2005 -- Agistics, a Pleasanton, Calif.-based company, today announced the closing of a $2 million series A round of funding from ATA Ventures and private investors. Agistics plans to use the proceeds from the round to define and begin development of a new Software as a Service offering for employee services. Agistics is developing a new hosted web-based offering to improve the delivery and management of employee services, such as compensation and benefits, communications and technology, travel, expense management and procurement. The goal is not to replace existing applications and services, but to dramatically improve the end-user experience and manageability of these employee services with a new application architecture and hosted delivery model.

Agistics is targeting mid-market companies and enterprise divisions of 500 to 5,000 employees with its offering. Many organizations of this size do not have the IT bandwidth needed to address the many projects needed to keep them profitable, competitive, and compliant with an endless stream of regulations. The Software as a Service model is proving to be a clear alternative to the costly and overly complex enterprise software solutions.

Agistics is led by an executive team with a long history of software development and technology implementation. "The goal of Agistics is to bring consumer-grade experience to the enterprise for employee services," said Dean Alms, chief executive of Agistics. "The frustration companies experience today with complex enterprise applications becomes increasingly unacceptable as the simple and highly productive consumer experiences with online banking, stock trading, shopping becomes more and more commonplace. The experience gap between what I can do at home at night to take care of domestic activity versus what I can do in the office during the day to take care of business activity is too great."

Agistics has assembled the design, development and operations talent to make the management of employee services as simple and straight-forward as best practices of the consumer internet. The payback is greater end-user satisfaction and productivity, improved agility and coordination for the providers of employee services, and a more productive and focused IT organization. Alms, former VP of Tools and Technology Strategy at PeopleSoft, co-founded Agistics with John Corpus, former VP of Applications at William-Sonoma, and Tim Cabral, former VP of Finance at PeopleSoft.

"Agistics stood out to us as a company with the right blend of technology innovation, application-orientation, and management strength needed to succeed," said Hatch Graham, partner at ATA Ventures. "We believe Agistics is well-positioned to take advantage of the growth in Software as a Service solutions and dramatic changes taking place in the enterprise. Much of the innovation in business software of late has focused on an organization's relationship to its customers; Agistics takes the right approach in turning this trend inward and focusing on the critical asset found in all businesses -- its employees."

About ATA Ventures

ATA Ventures is a venture capital firm focused on seeking out early stage private companies, which appear to offer above average prospects for capital growth. ATA Ventures focuses on Information Technology (IT) and provides seed capital and early stages of financing to these companies.

About Agistics

Agistics is a Pleasanton, Calif.-based company founded in 2005. The company is in the software as a service space, and is targeting mid-market companies and enterprise divisions of 500 to 5,000 employees with its offering. The company is led by an executive team formally from PeopleSoft, IBM, KPMG and Williams-Sonoma. For more information please visit www.agistics.com.

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