Will Add Leading UI Components to Progress
Platform to Enable Developers to Offer Exceptional User
Experiences
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 population on the planet – ABL, .NET,
Java, JavaScript, Node.js and 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.
Conference Call
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
1-781-280-4000.
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.
Press:Progress SoftwareJill Adams,
781-280-4474jiadams@progress.comorTelerik, IncErica Burns,
888-365-2779 #154Erica.Burns@telerik.comorProgress SoftwareRachel
Godwin, +44 (0) 7785 285551rachel.godwin@progress.comorInvestor
Relations:Progress SoftwareBrian Flanagan,
781-280-4817flanagan@progress.com
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