- Bold Move Extends J.D. Edwards’ Collaborative CRM Product Set; Enables Company to Capitalise on Customer and Market Demand for Integrated CRM Applications -
J.D. Edwards today announced the execution of a definitive agreement to acquire YOUcentric, Inc. of Charlotte, N.C. YOUcentric is a privately-held provider of Java-based customer relationship management (CRM) software, including applications for sales force automation, campaign management, contact centre management, and partner relationship management. CRM facilitates increased customer satisfaction and loyalty while reducing a company’s costs for meeting customers’ needs.
By adding YOUcentric’s capabilities, J.D. Edwards will deliver a comprehensive set of integrated collaborative applications that enable companies to electronically manage their business relationships from supply chain planning all the way to customer services.
J.D. Edwards’ collaborative commerce product set brings together Enterprise Resource Planning (ERP), Advanced Planning and Scheduling (APS), and Supplier Relationship Management (SRM) with traditional CRM functions. This enables a customer-oriented, collaborative B2B solution for optimising a company’s planning, marketing, sales, fulfilment, delivery, and service operations.
“Our customers and prospects are demanding software that delivers more value through enhanced customer experiences,” said C. Edward McVaney, chairman, president and CEO, J.D. Edwards. “By combining J.D. Edwards and YOUcentric, we will provide our current and future customers the benefits of a very adaptable and integrated collaborative CRM application suite.”
Rich Market Opportunity
The YOUcentric acquisition will position J.D. Edwards to capture demand in the high-growth CRM applications market, which AMR Research estimates will expand over the next five years by a 29% compound annual growth rate (CAGR). J.D. Edwards’ research shows limited penetration of CRM applications among its customer base with at least one third of its customers expressing intent to purchase CRM technology within two years.
“There is a clear propensity for organisations to utilise the CRM capabilities of their ERP backbone providers due to the inherent benefits of pre-integration,” says Steve Bonadio, senior program director, META Group, Inc. “In fact, our research reveals that CRM integration costs can amount to 60% of the total implementation cost associated with the average CRM project. Furthermore, organisations must look to application vendors that provide flexible, standards-based architectures to more readily integrate third-party data and systems.”
J.D. Edwards and YOUcentric – Delivering Collaborative Commerce CRM
YOUcentric’s YOUrelate™ product suite includes Web-based applications for sales force automation as well as management of marketing campaigns, contact centres, and partner relationships. Once YOUrelate™ is combined with J.D. Edwards’ current CRM offering – which includes point applications for service and warranty management, inbound service call management, customer self-service, sales order configuration, portals, and store fronts – J.D. Edwards will be able to deliver a mature, fully-integrated CRM solution suite that operates on technology platforms that include UNIX, Windows NT, and IBM OS/400. YOUrelate products also provide an Internet version, a disconnected client, and full wireless functionality across multiple portable devices. Additionally, all YOUcentric modules are available in six languages: English, French, Italian, Spanish, German and Portuguese.
Rapid Integration – Of Products and Operations
Consolidation of the two companies’ applications is expected to proceed rapidly, based on complementary technology architectures. Both companies develop component-based software that facilitates rapid integration of applications within a single company, as well as between companies – a key requirement for collaborative commerce. YOUcentric’s YOUrelate applications are built with the J2EE development language, which provides not only ease-of-integration, but also a highly flexible data model and full platform independence. The first phase of integration is expected to be complete by the end of 2001.
The companies expect to combine operations with similar ease and speed. It is anticipated that most of YOUcentric’s executive team and employees will remain with J.D. Edwards in Charlotte and join with other parts of J.D. Edwards to create a competency centre for customer-facing applications.
“J.D. Edwards and YOUcentric are exceedingly well matched,” said Don DeLoach, president and CEO, YOUcentric, Inc. “We will create a bright future together because our companies share technology and business philosophies grounded in meeting the current and future needs of our customers.”
Meeting Business Customers’ Needs
“We are delighted to hear of the deal between YOUcentric and J.D. Edwards,” said Dave Weaver, senior vice president, CRM Services, Bank of America, a YOUcentric customer. We believe it makes good sense for both companies.”
Besides Bank of America, YOUcentric serves a diverse range of industries and customers such as Seagate Technologies, FedEx, Hertz, ScanSource, Riverstone Networks, and McGraw-Hill. The company has received numerous industry accolades, including:
- Hot 100 Private Companies, Upside (May 2001)
- Top 15 CRM Software Packages for 2001, ISM (February 2001)
- Top 100 Emerging Companies to Watch in 2000, ComputerWorld (November 1999)
Terms of the Agreement
Under the terms of the agreement, J.D. Edwards plans to acquire 100 percent of the capital stock of YOUcentric, Inc., valued at approximately $86 million, in exchange for J.D. Edwards common stock and cash. The mix of common stock and cash will be determined upon closing, which is expected to be in 60 to 90 days, subject to regulatory approval. The transaction will be accounted for as a purchase and is expected to be accretive to earnings in fiscal 2002.
Conference Call Notice
J.D. Edwards will host a conference call to discuss the acquisition of YOUcentric at 8:30 a.m. Eastern Daylight Time today.
A webcast of the conference call will be available to all interested parties on the “Investor Relations” section of the J.D. Edwards website at http://www.jdedwards.com
About YOUcentric, Inc.
YOUcentric, Inc. is a supplier of eBusiness Relationship Management software. YOUcentric software allows businesses to manage information and interactions among customers, sales partners, employees, and suppliers in real time using the web – from a desktop, cell phone, palm device, or a pager. Our open, Java-based application allows us to rapidly provide integrated and tailored solutions more cost-effectively than competitive alternatives.
To learn more about YOUcentric’s eBusiness Relationship Management software, please visit our web site at http://www.youcentric.com
About J.D. Edwards
J.D. Edwards is a leading provider of agile, collaborative solutions for the connected economy. The Company’s open solutions give organisations the freedom to choose how they assemble their internal applications and how they collaborate with partners and customers across the supply chain to increase competitive advantage. Founded in 1977, J.D. Edwards is headquartered in Denver.
Additional information can be obtained by contacting the Company via the Internet at http://www.jdedwards.com or at 1-800-727-5333.
Copyright © J.D. Edwards World Source Company, 2000. J.D. Edwards is a registered trademark of J.D. Edwards & Company. The names of all other products and services of J.D. Edwards used herein are trademarks or registered trademarks of J.D. Edwards World Source Company. All other product names used herein are trademarks or registered trademarks of their respective owners. "YOUcentric" and "YOUrelate" are trademarks of YOUcentric, Inc. All other trademarks are the property of their respective owners
SAFE HARBOR STATEMENT
“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements about the expectations, beliefs, plans, intentions and strategies of J.D. Edwards relating to the acquisition of YOUcentric, Inc. Such forward looking statements include statements regarding future product offerings, potential benefits of future product offerings, beliefs about J.D. Edwards’ potential position in the CRM applications market, growth of the CRM applications market, the pace of consolidation of J.D. Edwards’ and YOUcentric, Inc.’s products and operations, retention of YOUcentric, Inc. senior executives and employees, and the transaction’s effect on J.D. Edwards’ fiscal 2002 earnings. These statements reflect J.D. Edwards’ current beliefs and are based on current information available to J.D. Edwards. The ability of J.D. Edwards to achieve these business objectives involves many risks and uncertainties that could cause actual outcomes and results to differ materially. In particular, while the companies hav!
e executed a definitive agreement, there is no assurance that they will complete the transaction. If the companies do not receive the necessary government or stockholder approvals or fail to satisfy conditions for closing, the transaction will terminate. Other risks and uncertainties include the failure to achieve expected synergies and efficiencies of operations; employee retention and maintenance of the business of YOUcentric, Inc. before the closing of the transaction; the ability of J.D. Edwards to retain and motivate key employees of YOUcentric, Inc.; the ability to coordinate strategy and resources between J.D. Edwards and YOUcentric, Inc.; loss of any YOUcentric, Inc. customers; the ability to manage the integration of products and operations between J.D. Edwards and YOUcentric, Inc.; risk of price fluctuation; timely development and acceptance of products and services and their feature sets; and other risks that are described from time to time in J.D. Edwards reports filed with the Securities and Exchange Commission. For a more detailed discussion of risks that could impact the Company’s results, please refer to J.D. Edwards & Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2000, the most recent quarterly report on Form 10-Q, and future quarterly reports on Form 10-Q. Copies of these documents can be obtained on the J.D. Edwards Investor Relations web site at http://www.jdedwards.com/company/investor.asp or by contacting the Investor Relations Department at 877-533-5332 (877-JDE-JDEC). The Company undertakes no obligation to update the information contained in this release, including any forward-looking statements, or to update any information on its website.
0118 909 1700
Giles Peddy/Vicki Entwistle
The weber Group
0207 240 6189
This press release was distributed by ResponseSource Press Release Wire on behalf of Golin in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.