Selectica Enters Into Agreement to Acquire b-pack

SAN MATEO, CA--(Marketwired - Mar 30, 2015) - Selectica, Inc. (NASDAQ: SLTC)

News Summary

Selectica, Inc. (NASDAQ: SLTC) today announced it has entered into a definitive agreement to acquire b-pack, a global leader in purchase-to-pay (P2P) software and services, for approximately $12.5 million in cash and stock. Complementing Selectica's offerings and go-to-market strategy, b-pack delivers solutions in eProcurement, Purchase to Pay, Asset Management, Budget Management, Invoice Management, and Expense Management. b-pack has more than 14 years of expertise and innovation in implementing flexible solutions that address organizations' critical procurement processes and requirements.

"I am excited about the opportunity to join with industry leader b-pack, extending our product portfolio; enhancing our global footprint -- particularly in mainland Europe where b-pack has a strong market presence; and expanding the solid team of professionals we have working to serve our clients," said Blaine Mathieu, President and CEO of Selectica. "It has long been our goal to enhance our enterprise CLM and supply management solutions to include best-in-class procure-to-pay applications. With b-pack joining the Selectica family, we believe this objective will be achieved."

"This is a great opportunity to build a global industry leader by combining our different solutions in the cloud and extending our capabilities to serve our clients in many countries. We expect to bring tremendous value to the market by sharing very strong business and technology expertise and to consolidate our long term strategy with our 350+ joint customers," said Julien Nadaud, CEO and founder of b-pack. "We have been looking for the right fit to enable b-pack to quickly move to the next level, and we expect Selectica will prove to be the perfect choice."

Transaction Highlights

• Selectica intends to pay approximately 90% of the purchase price in Selectica stock (calculated at a fixed price of $6.11 per share, resulting in 1,841,244 shares of common stock to be issued) and 10% in cash. In connection with the acquisition, Selectica will also grant options to purchase 700,000 shares of its common stock to the employees of b-pack. 
  
  
• The transaction is currently expected to close during Q1 of Selectica's fiscal year 2016, which ends June 30, 2015.
  
  
• Needham & Company, LLC served as the financial advisor for the transaction.
  
  
• b-pack's revenue for calendar 2014 is approximately $4 to $5 million, based upon its preliminary, unaudited financials. It has historically grown in the low double-digits overall, with its SaaS business having grown much faster. A majority of its revenue is currently generated from customers located in mainland Europe, while its U.S. market presence has been building in the last 3 years since opening their U.S. and corporate headquarters in Atlanta, Georgia.
  
  
• Gartner ranks b-pack as a visionary in the 2015 Magic Quadrant for Procure-to-Pay Suites for Indirect Procurement citing its highly configurable workflow and overall platform; strong out-of-the-box P2P functionality; ease of upgrade and mobile device support.
  
  
• b-pack's solutions are currently deployed with more than 100 global customers including McDonald's, Dannon, Renault-Nissan, Yves Saint Laurent, Gucci, Aon, and Sony Music, to name a few. You can visit the b-pack customer listing for more information.
  
  
• Following the close of this transaction, Selectica will have over 350 global customers and partners, who will be able to leverage a full suite of supply management applications for the enterprise, including end-to-end upstream and downstream procurement capabilities integrated with contract lifecycle management. 
  
  
• Founded in 2000, b-pack has its corporate headquarters in Atlanta, Georgia and operations in Aix-en-Provence near Marseille, France. Its executive team and staff members include approximately 50 people.
  
  

More information about this announcement can be found here.

Conference Call Details

Selectica will be holding a call at 9:30 am (PDT) / 12:30 pm (EDT) on Monday, March 30, 2015 to discuss this acquisition in more detail and answer questions. To access the call, please use the numbers below:

Live Participant Conference Call Numbers:
Toll-Free: 1-877-407-0789
 Toll/International: 1-201-689-8562
 Live Webcast Link: http://public.viavid.com/index.php?id=113795

Replay Dial-in Info:
Toll-Free: 1-877-870-5176
 Toll/International: 1-858-384-5517
 From: 03/30/15 @ 3:30 pm (EDT) To: 04/13/15 @ 11:59 pm (EDT)
 Replay Pin Number: 13605685

Supporting Resources

• About Selectica and b-pack
• Blaine Mathieu video
• Blaine Mathieu blog post
• David Bush blog post
• Patrick Stakenas blog post
• Selectica on Twitter
• FAQs

About Selectica, Inc.

Selectica, Inc. (NASDAQ: SLTC) provides a platform for enterprises worldwide to create, manage, and optimize business relationships with contracts at the core. Selectica helps global companies actively manage their contracts throughout the sales, procurement, and legal life cycles. Selectica's contract management solutions drive business value by assisting organizations in managing contracts profitably, effectively accelerating revenue opportunities, and minimizing risk through compliance. Through IASTA, a Selectica company, we provide leading supply management and spend management solutions, dedicated to empowering sourcing and purchasing professionals. Our blend of acclaimed software and services focus on improving spend analysis, procurement intelligence, sourcing, and supplier life cycle management. Our solutions play a critical role in optimizing business relationships by enhancing supply base insights, improving supplier collaboration and reducing the supply chain risks vital to today's globally-minded enterprise. Selectica also provides a powerful configuration engine, enabling Fortune 500 companies to accelerate revenue by facilitating the optimization of the right combination of products, services, and price. For more information visit: www.selectica.com or www.iasta.com.

Forward-looking statements

Certain statements in this release and elsewhere by Selectica are forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding anticipated synergies relating to the acquisition, business outlook, assessment of market conditions, anticipated financial and operating results, strategies, product and channel development, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to risks to consummating the acquisition of b-pack, challenges in integrating the business of b-pack after closing, fluctuations in demand for company products and services, risks of losing key personnel or customers, protection of the company's intellectual property and government policies and regulations, including, but not limited to those affecting the company's industry. Selectica undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional risk factors concerning the company can be found in the company's most recent Form 10-K, as supplemented in the company's most recent Form 10-Q, each as filed by the company with the Securities and Exchange Commission.