Bracknell, Berkshire, UK â January 6th , 2006 â Actuate Corporation (NASDAQ: ACTU), the world leader in Enterprise Reporting Applications, today announced that it has acquired all of the outstanding shares of capital stock of privately-held performancesoft Inc., of Toronto, Ontario, Canada, a leading provider of Performance Management Solutions software and services.
"Dashboards and scorecards are the preferred applications to deliver executive level information to manage corporate performance," said Pete Cittadini, president and CEO of Actuate Corporation. "However, to truly achieve breakthrough corporate performance, companies must take Performance Management beyond the executive suite and the finance department. The combination of performancesoftâs leading Performance Management applications and Actuateâs Enterprise Reporting Application platform provides the best in market capabilities for distributing accountability throughout the enterprise. Our customers will now be able to quickly build and deploy rich, intuitive and easy to use dashboard and scorecard applications, offering managers at all levels the ability to drill-through from executive level information to real-time operational details, resulting in heightened management effectiveness and breakthrough corporate performance throughout the enterprise."
"performancesoft has led the way in delivering easy to use applications that provide a holistic view of true performance resulting in the worldâs most widely deployed Performance Management solution," said Mike Tipping, president and CEO of performancesoft, Inc. "We are excited to join the Actuate organisation and proud to be able to offer our joint customers a wider range of solutions to further enhance their Performance Management initiatives."
The acquisition was an all-cash transaction with an initial purchase price of US$16.5 million and additional contingent cash consideration of up to US$13.5 million (based on achievement of certain revenue and operating margin targets for 2006) payable in 2007 and will be accounted for under the purchase method of accounting. On a non-GAAP basis, excluding amortisation of intangibles, purchased in-process research and development costs, stock option compensation, restructuring costs and other non-recurring costs, Actuate expects the acquisition to be accretive to earnings by the fourth quarter of 2006 and approximately breakeven for the full year of 2006. Net income for 2006 will be computed using an income tax rate of 30.0%.