Datawatch Announces Agreement To Acquire Panopticon To Deliver Real-time Big Data Visual Discovery Solutions

Chelmsford, MA - 17 June 2013

Datawatch Becomes First to Offer Analytic Solutions Linking Structured, Semi-Structured and Unstructured Data to High Velocity Visual Discovery

Datawatch Corporation (NASDAQ-CM: DWCH), the leading global provider of information optimization solutions, has agreed to acquire Panopticon Software AB, a privately held Swedish company specializing in the delivery of real-time visual data discovery solutions. Under terms of the definitive agreement - unanimously approved by the Boards of Directors of both companies - Datawatch will acquire all outstanding shares of Panopticon in an all-stock transaction. Based upon the closing price of Datawatch common stock as of June 14, 2013, the deal is valued at approximately $31.4 million. Completion of the transaction is subject to the approval of the Datawatch stockholders, which is expected to occur during its fiscal fourth quarter ending September 30, 2013.

The integration of Panopticon's advanced visual data discovery software makes Datawatch the first company to deliver real-time analytics and discovery by accessing the industry's broadest variety of data types simultaneously—including traditional structured relational databases, semi-structured sources like reports, PDF files, EDI streams, print spools and documents stored in files systems or enterprise content management systems, with a new mix of unstructured data such as machine data and social media stored in Big Data solutions or streaming directly from a host of real-time applications.

Associating all relevant data in a visually-rich, real-time analytical environment enables businesses to isolate and resolve problems as they occur, perceive hidden patterns, track emerging market trends, and identify opportunities for competitive advantage and improved business processes. Panopticon's customers span all vertical industries and include some of the largest multinational companies in the world, including Citigroup, Credit Suisse, HSBC, J.P. Morgan, Novartis, Pfizer, Vodafone, Cable & Wireless, Shell and BAE.

"The acquisition of Panopticon is a transformative event for Datawatch and the industry," said Michael A. Morrison, President and CEO of Datawatch. "This acquisition will immediately benefit our combined customers, partners and prospects by allowing them to accelerate the development and deployment of solutions that use the wide variety of data formats and sources present in every organization. Our collective capabilities to address Big Data opportunities are vastly improved with the high velocity access enabled by Panopticon's real-time visual data discovery solution and the variety of data sources and formats that can be transformed by the Datawatch Information Optimization platform."

Panopticon is a particularly good fit for Big Data environments where visual data discovery capabilities allow people to use their intuition to find meaningful – and actionable – information in all the data available to them, including semi-structured and unstructured sources, real-time streaming feeds as well as message buses and complex event processing engines.

"Panopticon pioneered interactive, real-time visual data discovery to speed up business processes, reduce operational and investment risks, detect anomalies and identify opportunities for growth," said Willem De Geer, Managing Director of Panopticon. "We are excited to join forces with Datawatch and bring a truly unique solution for visual analysis of the wide diversity of data formats that exist within enterprises. Our customers and partners will be thrilled to have the opportunity to incorporate semi-structured and unstructured data into their Panopticon solutions."

"Effective visualization of business information is in heavy demand; our research shows that 48 percent of organizations have indicated presenting data visually is an essential business analytics capability, with visual data discovery being one of the top three big data analytics needs not effectively delivered today, and that visualization is more important for businesses than just a focus on velocity or volume," said Mark Smith, CEO and Chief Research Officer, Ventana Research. "Datawatch's acquisition of Panopticon to extend the value of information optimization with analytical discovery, that maximizes the use of data and events, is what business has been demanding and the combination will bring new innovation to our industry."

In addition to its technology value, Panopticon also enjoys strong partnerships and alliances with many influential global organizations, including Thomson Reuters, SAP, Deloitte, Accenture and QlikTech. Panopticon was recently named a "Cool Vendor" in the Cool Vendors for In-Memory Computing 2013 report by Gartner, Inc.

Morrison concluded, "Our growth strategy at Datawatch is based in large part upon a growing solution portfolio and a robust partner ecosystem. With the addition of Panopticon's unparalleled visualization technology, we accelerate our time to market in both key areas. Panopticon has developed more than 30 customer-ready solution assets and forged dozens of partner and alliance relationships. The synergies between our businesses are compelling and should become even more exciting as the Big Data and real-time markets continue to expand."

Canaccord Genuity acted as Datawatch's exclusive financial advisor on the Panopticon transaction.

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