E.piphany, Inc., a manufacturer of software that analyzes customers’ buying habits, announced today that it has agreed to acquire RightPoint, Inc., for about $392 million (US$) in stock.
This acquisition is the first made by E.piphany since its phenomenally successful September IPO. Yesterday, shares of the company fell $5.87 to $112.50.
Under the terms of the agreement, E.piphany will issue approximately 3.5 million shares of its common stock to shareholders of RightPoint in return for a 10.5 percent stake in the company.
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By acquiring RightPoint, E.piphany will be able to offer software that helps companies make quick decisions about how to interact with customers. For instance, when a consumer calls into a bank’s customer service line, RightPoint’s software instantly gathers all the information that the bank has on the person and sends a message to the call center representative. The representative is then instructed to make a specific offer to that consumer based on an analysis of the data.
“E.piphany and RightPoint create a single view of the customer and manage customer interactions through real-time personalization,” said Roger Siboni, president and CEO of E.piphany. “Until now, technology buyers have struggled with a proliferation of vendors and fragmented piece part offerings. Today, we have set a new standard for customer interaction.”
Industry observers feel that the joining of the two companies is a definite win for both firms.
“The Internet enables new forms of real-time, interactive communication with customers and can also provide deep insight into their buying behaviors,” said Christopher Fletcher, Managing Director with the Aberdeen Group. “But in order for this vision to be realized, multiple technologies governing customer interaction, analysis, campaign management and personalization must be brought together.”
Nonetheless, analysts also point out that E.piphany faces fierce competition in this segment of the e-commerce marketplace from such giants as Oracle and Siebel Systems.
Based in San Mateo, California, E.piphany (Nasdaq: ESNY) designs analytical software, which gives companies insight into their customers’ habits, enabling them to personalize e-commerce transactions.
E.piphany also provides training, support, and consulting services. Its customers include software developer Autodesk, brokerage firm Charles Schwab, and computer maker Hewlett-Packard. Its products are sold directly and through resellers.
Investment firms Kleiner Perkins and Information Technology Ventures each own about 15 percent of E.piphany.
In its fiscal year ending in December, E.piphany — which will now employ about 275 workers — lost about $10.4 million on revenue of $3.4 million.
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