SOURCE: Model N, Inc.

Model N, Inc.

January 05, 2017 16:26 ET

Model N Completes Acquisition of Revitas, Inc.

Acquisition extends industry leadership and accelerates life sciences revenue management innovation

REDWOOD CITY, CA--(Marketwired - January 05, 2017) - Model N, Inc. (NYSE: MODN), a provider of cloud-based revenue management solutions to life sciences, technology and manufacturing companies, today announced it has completed its acquisition of Revitas, Inc., a provider of life sciences revenue management software. Through this transaction, Model N now provides life sciences companies with a broader portfolio of best-in-class solutions and expanded options to leverage cloud computing to transform the management of revenue into a strategic, end-to-end process that drives growth and maximizes revenue.

"We are excited to welcome the Revitas customers, partners and employees to the Model N family," said Zack Rinat, founder, executive chairman and CEO of Model N. "Together we will deliver increased value to our joint customers by delivering innovative revenue management solutions in the cloud."

Model N's acquisition of Revitas unites more than 40 years of combined revenue management experience, more than 80 life sciences customers and a presence in 10 major locations around the world. The acquisition will enable Model N to accelerate innovation across a broad set of applications to the benefit of the life sciences industry at this critical moment when revenue management is becoming a strategic imperative, one in which the industry is experiencing unprecedented and evolving global regulation, increasing price transparency, a transition from traditional consumption-based pricing to new outcome-based models and the need to acquire and divest in an M&A-centric industry.

"Today is a major milestone in the history of Model N as we increase the value we can deliver to both customers and shareholders. We expect to drive top line growth, complete the transition of our business model to 100 percent recurring revenues and accelerate our path toward profitability and cash flow generation," said Rinat.

JMP Securities served as exclusive financial advisor to Model N and Robert W. Baird & Co. served as financial advisor to Revitas on the transaction. Durham Capital Corporation advised on the debt financing.

About Model N

Model N is a leader in revenue management solutions. Driving mission-critical business processes such as configure, price and quote (CPQ), contract and rebate management, business intelligence, and regulatory compliance, Model N solutions transform the revenue lifecycle from a series of disjointed operations into a strategic end-to-end process. With deep industry expertise, Model N supports the complex business needs of the world's leading brands in life sciences, technology and manufacturing across more than 100 countries, including Johnson & Johnson, AstraZeneca, Boston Scientific, Novartis, Microchip Technology and Fairchild. For more information, visit www.modeln.com.

Model N® is the registered trademark of Model N, Inc. Any other company names mentioned are the property of their respective owners and are mentioned for identification purposes only.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding the benefits of Model N's acquisition of Revitas. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: (i) successful integration of Revitas, its product, technologies and employees; (ii) delays in closing customer contracts; (iii) our ability to improve and sustain our sales execution; (iv) the timing of new orders and the associated revenue recognition; (v) adverse changes in general economic or market conditions; (vi) delays or reductions in information technology spending and resulting variability in customer orders from quarter to quarter; (vii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors and new applications and marketing initiatives by our competitors; (viii) our ability to manage our growth effectively; and (ix) acceptance of our applications and services by customers; (x) success of new products; (xi) the risk that the strategic initiatives that we may pursue will not result in significant future revenues; and (xii) our ability to retain customers of Model N and Revitas. Further information on risks that could affect Model N's results is included in our filings with the Securities and Exchange Commission ("SEC"), including our most recent quarterly report on Form 10-Q and our annual report on Form 10-K for the fiscal year ended September 30, 2016, and any current reports on Form 8-K that we may file from time to time. Should any of these risks or uncertainties materialize, actual results could differ materially from expectations. Model N assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.

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