Progress Software Announces Intent to Acquire Telerik
Will Add Leading UI Components to Progress Platform to Enable
Developers to Offer Exceptional User Experiences
BEDFORD, Mass.--(BUSINESS WIRE)--
Progress Software Corporation (NASDAQ:PRGS) today announced that it has
entered into a definitive agreement to acquire privately held Telerik
AD, a leading provider of application development tools, for $262.5
million. Telerik enables its 1.4 million strong developer community to
create compelling user experiences across cloud, web, mobile and desktop
applications. Telerik's revenue for the last twelve months was over $60
million, with annual bookings growth of over 20%. Progress expects the
addition of Telerik to be slightly accretive on a Non-GAAP basis in the
first year following the acquisition.
The combination of Progress and Telerik will create a comprehensive
cloud and on-premise platform offering that enables developers to
rapidly create beautiful applications driven by data for any device or
cloud. The combined offering will enable developers to create highly
personalized user experiences, powerful applications and connections to
multiple data sources without being limited by cloud or device.
"User experience is defining the way application software is being
selected. Telerik's strength is in helping developers create elegant,
custom user interfaces for their cloud, web-based and on-premise
applications," said Phil Pead, Progress CEO. "Building applications
today is truly complex. Developers also must deal with security,
scaling, massive amounts of data and the ability to deploy on a large
number of different devices. Together, Progress and Telerik can help to
solve these issues so that developers can focus on building software
that solves business problems."
The combination of Progress and Telerik brings together two highly
complementary companies, each a recognized leader in application
development. More than 4 million users and 47,000 businesses in over 175
countries run applications on the Progress OpenEdge platform and
database, and with its Pacific and Modulus platform, Progress offers an
integrated cloud platform for developers to rapidly create applications
on any cloud or on-premise infrastructure. Progress was recently
positioned as a "Visionary" in Gartner's Magic Quadrant for Enterprise
Application Platform-as-a-Service (aPaaS).
For over 12 years, Telerik has been at the forefront of enabling
developers at 450 of the Fortune 500 to deliver best-in-class web,
desktop and mobile applications. Telerik offers a comprehensive suite of
UI development tools and application life cycle management; a
cloud-based platform, and a web content management system for creating
and managing mobilized, enterprise websites. Telerik was positioned as a
"Visionary" in both the Gartner Magic Quadrant for Mobile Application
Development Platforms and for Integrated Software Quality Suites.
"We are extremely proud of the incredible achievements and momentum our
employees, customers and partners have created for Telerik to date,"
said Vassil Terziev, Co-CEO and Co-Founder of Telerik. "The acquisition
by Progress will further strengthen our enterprise and cloud offerings,
and will enable us to continue innovating and redefining modern
application development. We expect this new chapter to dramatically
expand our growth and to provide greater opportunities for Telerik and
Progress customers, partners and employees."
Mr. Pead concluded, "Telerik's products and people are a great fit with
Progress. Their success in growing their business using a primarily
self-service, digital strategy, with a proven ability to draw developers
to their website, will accelerate our overall growth strategy. With
Telerik, Progress becomes a destination site for the largest developer
Mobile - for developers to create captivating applications using their
tools or ours, deployed on our platform anywhere."
The acquisition is expected to close in early December, subject to
obtaining regulatory consents and satisfaction of other customary
closing conditions. Following the completion of the acquisition, the
Telerik founders and key management will join Progress. Progress expects
to fund a portion of the purchase price with debt, and the company will
provide further details regarding the funding and debt structure after
the transaction is closed.
Lazard Freres & Co LLC is serving as Telerik's financial advisor with
respect to the transaction.
Progress will hold a conference call on Wednesday, October 22, 2014 at
11:00 a.m. ET, which can be accessed on the investor relations section
of the company's website, located at www.progress.com.
Additionally, you can listen to the call by telephone by dialing
1-888-205-6648, pass code 5833793. The conference call will include
brief comments followed by questions and answers. An archived version of
the conference call and supporting materials will be available on the
Progress Software website within the investor relations section after
the live conference call.
Legal Notice Regarding Non-GAAP Financial Information
Progress Software provides non-GAAP financial information as additional
information for investors. These non-GAAP measures are not in accordance
with, or an alternative to, generally accepted accounting principles in
the United States (GAAP). Progress Software believes that non-GAAP
financial information is useful for an understanding of its ongoing
operations and provides additional detail and an alternative method of
assessing its operating results. Management uses non-GAAP financial
information to compare the company's performance to that of prior
periods for analysis of trends and for budget and planning purposes.
Note Regarding Forward-Looking Statements
This press release contains statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Progress Software has identified some of these
forward-looking statements with words like "believe," "may," "could,"
"would," "might," "should,""expect," "intend," "plan," "target,"
"anticipate" and "continue," the negative of these words, other terms of
similar meaning or the use of future dates.
These statements are based on our current expectations and beliefs and
are subject to a number of trends and uncertainties that could cause
actual events to differ materially from those described in the
forward-looking statements. Reliance should not be placed on any such
statements because of their very nature, they are subject to known and
unknown risks and uncertainties and can be affected by factors that
could cause them to differ materially from those expressed or implied in
the forward-looking statements. We can give no assurance that
expectations will be attained. Risks, uncertainties and other important
factors that could cause actual results to differ from those expressed
or implied in the forward looking statements include: uncertainties as
to the timing of the closing of Progress Software's acquisition of
Telerik; the possibility that various closing conditions for the
transaction may not be satisfied or waived, including that a
governmental entity may prohibit, delay or refuse to grant approval for
the consummation of the transaction; the effects of disruption from the
transaction making it more difficult to maintain relationships with
employees, licensees, other business partners or governmental entities;
other business effects, including the effects of industry, economic or
political conditions outside of Progress Software's or Telerik's
control; transaction costs; actual or contingent liabilities;
uncertainties as to whether anticipated synergies will be realized; and
uncertainties as to whether Telerik's business will be successfully
integrated with Progress Software's business. For further information
regarding risks and uncertainties associated with Progress Software's
business, please refer to Progress Software's filings with the
Securities and Exchange Commission, including its Annual Report on Form
10-K for the fiscal year ended November 30, 2013. Progress Software
undertakes no obligation to update any forward-looking statements, which
speak only as of the date of this press release.
About Telerik AD
Telerik empowers its customers to create compelling app experiences
across any screen. Their end-to-end platform uniquely combines
industry-leading UI tools with cloud services to simplify the entire app
development lifecycle. Telerik tools and services can be adopted
individually or as a platform and seamlessly integrated with other
popular developer solutions. More than 130,000 customers from 60,000
organizations in 94 countries depend on Telerik products, including more
than 450 of the Fortune 500®, academic institutions, governments and
non-profits. For additional information about Telerik, please visit telerik.com
or follow @telerik on Twitter.
About Progress Software Corporation
Progress Software Corporation (NASDAQ:
PRGS) is a global software company that simplifies the development,
deployment and management of business applications on-premise or in the
cloud, on any platform or device, to any data source, with enhanced
performance, minimal IT complexity and low total cost of ownership.
Progress Software can be reached at www.progress.com or
Progress is a trademark or registered trademarks of Progress Software
Corporation or one of its subsidiaries or affiliates in the U.S. and
other countries. Any other trademarks contained herein are the property
of their respective owners.
Jill Adams, 781-280-4474
Erica Burns, 888-365-2779 #154
Rachel Godwin, +44 (0) 7785 285551
Brian Flanagan, 781-280-4817
Source: Progress Software Corporation
News Provided by Acquire Media
Close window | Back to top