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Strategic Combination Will Leverage Complementary Strengths To Create

The Leading Provider of eBusiness Infrastructure Management and Intelligence Solutions

NetIQ, the market leader in Windows eBusiness infrastructure management, and WebTrends, the
market leader in web analytics and eBusiness intelligence, today announced a definitive merger
agreement, creating the leading provider of eBusiness infrastructure management and intelligence

The combined company will be uniquely positioned to provide enterprise organisations,
eBusinesses and service providers the most comprehensive infrastructure management and
intelligence solutions for all the components of their eBusiness infrastructure ¾ from back-end
servers, networks and directories to front-end web servers and applications. The resulting product
portfolio will include product lines for systems administration, network performance management,
operations management, security management, web management, and eBusiness analytics and

Under the terms of the transaction, which was approved by the boards of directors of both
companies, WebTrends shareholders will receive 0.480 shares of NetIQ common stock for each
WebTrends common share. Based on NetIQ's closing price of $75.00 on Tuesday, January 16,
2001, the transaction is valued at $36.00 per WebTrends share, or a total of approximately $1
billion. On a fully diluted basis, NetIQ shareholders will own approximately 76% of the company
and WebTrends shareholders will own approximately 24%. With the combination, NetIQ will
have a market capitalisation in excess of $4 billion, pro forma calendar 2000 revenues of
approximately $160 million, more than 52,000 customers and about 1,000 employees. The
combined company will operate under the name NetIQ.

"Building on the successful merger of NetIQ and Mission Critical and other recent strategic
moves, this combination is the logical next step in our strategy to become the unparalleled leader in
eBusiness infrastructure management and intelligence solutions," said Ching-Fa Hwang, chief
executive officer of NetIQ. "By joining forces with WebTrends, we will significantly enhance our
offering and deliver the most comprehensive solution for managing both Windows- and
non-Windows-based platforms such as Linux and Sun Solaris, applications and devices, and
Internet-based systems."

Eli Shapira, currently WebTrends chief executive officer, who will become chief strategy officer for
NetIQ, stated, "This combination is a strategic fit that brings together two leaders focused on
helping companies increase the return from their eBusiness initiatives, from NetIQ's comprehensive
infrastructure management through WebTrends' Visitor Relationship Management solutions. Simply
stated, this combination will result in greatly enhanced offerings for our more than 52,000 collective
customers, increased business opportunities with partners, significant value creation for our
shareholders and compelling opportunities for all our employees."

Shapira will join NetIQ's Board of Directors. Glen Boyd, currently president and chief technology
officer of WebTrends, will become chief information officer of NetIQ, and Dan Meub, currently
chief operating officer of WebTrends, will become senior vice president of WebTrends products at

The combined company will be headquartered in San Jose, CA, with development and operational
personnel located in Houston, TX, Raleigh, NC and Bellevue, WA. NetIQ will also maintain
significant operations in Portland, OR, where WebTrends is headquartered.

The transaction, which will be accounted for as a purchase and is anticipated to be tax-free to the
shareholders of both companies, is expected to close late in the first calendar quarter or early in the
second quarter, subject to regulatory approvals, approval by the shareholders of both companies,
and customary closing conditions. The holders of approximately 30% of WebTrend's outstanding
shares have agreed to vote their shares in favour of the merger. The transaction is expected to be
accretive to NetIQ's earnings per share beginning in the June quarter excluding non-cash
acquisition related charges, if any, arising from the merger.

NetIQ and WebTrends will host an analyst/investor conference call today, Wednesday, January
17, 2001 at 8:30 a.m. (EST), 1:30 p.m. (GMT), 2:30 p.m. (Mainland Europe Time) to discuss the
proposed merger between the two companies. Individuals calling from the United States can
access the call by dialing +1 888-769-8925 at 8:20 a.m. (EST). International callers should dial
+1 312-470-7391. The name of the call and pass code is NetIQ and WebTrends. Media are
invited to join the call in a listen-only mode.

NetIQ/WebTrends Earnings Announcements

NetIQ will issue its second quarter of fiscal year 2001 earnings announcement on Thursday,
January 18, 2001 following the stock market close. Ching-Fa Hwang, President and CEO, and
Jim Barth, Senior Vice President and CFO will review second quarter earnings in a teleconference
call at 4:30 p.m. EST, 9:30 p.m. (GMT), 10:30 p.m. (Mainland Europe Time). WebTrends will
release its fourth quarter 2000 and year-end results on Tuesday, January 23, 2001 following the
stock market close. Eli Shapira, Chairman and CEO and Jim Richardson, Senior Vice President
and CFO will review the results with the investment community in a teleconference at 5:00 p.m.
EST, 10p.m (GMT), 11 p.m. (Mainland Europe Time) that afternoon. Both companies expect to
report results exceeding consensus revenue and earnings estimates for the quarter.

About WebTrends

Founded in 1993, WebTrends is the leading provider of Visitor Relationship Management and
eBusiness Intelligence solutions for Internet and intranet servers and firewalls. WebTrends offers
organisations a comprehensive set of solutions to improve the return on investment from eBusiness
initiatives. The company is headquartered in Portland, OR. For more information, please visit
WebTrends' Web site at

About NetIQ

NetIQ is a leading provider of e-business infrastructure management software encompassing
application, directory, server and network performance management. The company is
headquartered in San Jose, Calif., with development and operational personnel in Houston, TX;
Raleigh, N.C.; and Bellevue, WA. European headquarters are based in Staines, Middlesex. For
more information, please visit NetIQ's Web site at

All referenced product names are trademarks of their respective companies.

Safe Harbor Statement

Statements in this press release other than statements of historical fact are "forward-looking"
statements within the meaning of the Private Securities Litigation Reform Act of 1995. The
companies' actual future results could differ materially from the results discussed herein.
Factors that could cause or contribute to such differences include the risks inherent in
acquisitions of technology businesses including the successful consummation of the merger
and integration of the companies, the timing and successful development of technology; the
ability to retain key management and hire technical personnel and other employees; changing
relationships with customers, suppliers and strategic partners; unanticipated costs associated
with development and marketing activities; customer acceptance of new product offerings;
pricing of new products, and competition in our various product lines. For a more complete
discussion of risks and uncertainties for each company see the section entitled "Factors That
May Affect Future Results" in the NetIQ annual report on Form 10-K, and "Risk Factors" in
the WebTrends annual report on Form 10-K as filed with the Securities and Exchange

For further information please contact:

Simon Robinson

European Marketing Manager,


Tel: + 44 (0) 1784 416919

Fax: + 44 (0)1784 416 900



Alex Brew Oast


Tel: + 44 (0) 1959 568545

Fax: + 44 (0) 1959 568506



For WebTrends:

Bill Schneider,

Press Relations,

+1 (503) -294-7025 x 2362,

Nanci Werts,

Investor Relations,

+1 (503) -294-7025 x 2564

This press release was distributed by ResponseSource Press Release Wire on behalf of Oast Communications in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit