Verity Agrees To Acquire Enterprise Search Software Business from Inktomi
Transaction To Broaden Verity's Offerings of Enterprise Information Retrieval Products, Enable Inktomi to Focus Exclusively on Web Search
SUNNYVALE, Calif. and FOSTER CITY, Calif - 2002-11-13 - Verity Inc. (NASDAQ: VRTY) and Inktomi Corp. (NASDAQ: INKT) today jointly announced that they have entered into an agreement under which Verity will purchase Inktomi's enterprise search software business.
Under the terms of the deal, Verity, a leading provider of infrastructure software that powers corporate intranets and e-commerce sites as well as OEM technology used in more than 250 e-business applications, will acquire from Inktomi, a leading provider of Web search and enterprise information retrieval solutions, the assets relating to Inktomi's enterprise search software business, which includes basic search, categorization and content refinement capabilities, as well as its XML technology assets. Verity will pay a purchase price of $25 million in cash, and will also assume Inktomi's obligations under certain existing enterprise search business contracts, including customer support obligations. In addition, Verity intends to offer employment to selected development, sales and marketing, and support personnel from Inktomi's enterprise search business unit. The companies currently anticipate closing the transaction in the next 30 to 60 days, subject to the satisfaction of customary closing conditions.
"With this transaction, we continue to extend our product offerings to meet the needs of our enterprise customers," said Gary J. Sbona, Verity's chairman and CEO. "The assets and customers Verity will be acquiring should enable us to better compete across the full spectrum of the enterprise search market and in key geographies around the globe, while continuing to build upon our business success. As the needs of these customers grow, we can provide them with a logical migration path to our advanced product portfolio."
"This action involves a technology and a market segment that Verity understands thoroughly," said Anthony J. Bettencourt, Verity's president. "By adding a complementary basic search product and a highly successful inside sales process, Verity extends its core competencies across the enterprise information retrieval market and becomes better able to take advantage of revenue opportunities at a new level."
"Verity will provide continued product development and support for enterprise search customers, enabling Inktomi's customers to maximize the return-on-investment in their information retrieval products," said David Peterschmidt, Inktomi's president and CEO. "Inktomi is the leading provider of OEM Web search and paid inclusion services and we see strong opportunities ahead in a growing Web search market. We will be able to apply the proceeds from this transaction to an increased focus on our core Web search business and accelerate our move toward becoming cash flow and EBITDA positive."
Verity anticipates the transaction will be accretive to earnings per share within the first six months following closing. Under the terms of the parties' agreement, Verity will gain access to Inktomi's customer base of 2,500 companies worldwide, significantly broadening Verity's installed base of enterprise customers.
Conference Call:
Verity will host a conference call on Wednesday, November 13, 2002 at 2:30 p.m. PST to discuss the transaction. The call can be heard via Webcast accessed through the Investor Relations section of Verity's Web site: www.verity.com or by dialing into 1-877-888-3855 (US and Canada) and 1-416-695-5259 (International). The Webcast will also be archived on the Verity Web site, along with the transcript of the call.
Serving as financial advisor and legal counsel to Verity in this transaction were SG Cowen and Cooley Godward, respectively. Representing Inktomi were Credit Suisse First Boston and Skadden, Arps, Slate, Meagher & Flom LLP.
About Inktomi
Based in Foster City, Calif., Inktomi is a leading provider of Web search and enterprise information retrieval products. The company that pioneered Web search, Inktomi is the market-leading OEM provider of search and services such as paid inclusion programs for leading consumer portals, Internet destinations and e-commerce sites worldwide. On Nov. 13, 2002, Inktomi announced a definitive agreement to sell its enterprise search business to Verity, Inc. For more information, visit http://www.inktomi.com.
About Verity
Headquartered in Sunnyvale, Calif., Verity is a leading provider of business portal infrastructure software. Verity software gives businesses a multitude of ways to improve access to vital information and perform a range of e-business operations, while enhancing the end-user experience. Verity-powered business portals, which include corporate intranets used for sharing information within an enterprise; e-commerce sites for online selling; and market exchange portals for B2B activities, all provide personalized information to employees, partners, customers and suppliers.
Verity products are used by approximately 80 percent of the Fortune 50 and by more than 1,500 corporations in various markets. Customers include Adobe Systems, AT&T, Cap Gemini Ernst & Young, Cisco, CNET, Compaq, Dow Jones, EDGAR Online, FairMarket, Financial Times, Globe and Mail, Home Depot, Lotus, SAP, Siemens, Sybase, Time New Media and Timex.
Forward-Looking Statements:
The statements in this press release regarding the benefits Verity expects to obtain from the acquisition, including its expectations that the acquisition will be accretive, the potential benefits of Inktomi products and its potential employment of Inktomi personnel and utilization of Inktomi product and technologies, are forward-looking statements that involve a number of uncertainties and risks. The success of the acquisition and benefits Verity ultimately obtains may differ from Verity's expectations. Such uncertainties and risks include, without limitation: the potential failure of Verity or Inktomi to satisfy or waive the closing conditions for the acquisition (in which case the acquisition may not close); potential difficulties and uncertainties in the assimilation of technologies, methodologies and products of Inktomi into Verity's products; the risk of loss of key personnel Verity expects to hire from Inktomi; diversion of management attention from other business concerns; and the risk that the integration of the potential benefits of Inktomi technology and personnel into Verity will not be successful due to company culture or other issues. As a result actual results may differ substantially from expectations. For further information on risks affecting Verity, refer to the section entitled "Risk Factors" in Verity's most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. Verity undertakes no obligation to update the information in this press release.
This press release contains forward-looking statements regarding Inktomi's future financial and operating results and benefits to Inktomi and its customers derived from the sales of its enterprise search business. These statements are based on current expectations and are subject to a number of risks and uncertainties. Actual results could differ materially from those projected in any forward-looking statements. Factors that could affect Inktomi's financial and operating results and other forward looking statements contained in this release include the potential failure of Verity or Inktomi to satisfy the closing conditions for the acquisition; risks of costs and delays related to the sale of the assets of the enterprise search business; dependency on a small number of portal customers in the Web search business; substantial competition; risks related to the consolidation of operations and reductions in force; dependency on future revenue from a single business unit with limited service offerings; changing buying patterns of customers and potential customers; need to develop, acquire and release new products and technologies; and risks associated with acquisitions, dispositions, strategic alliances, international operations and product release dates. For more information and additional risk factors regarding Inktomi generally see "Factors Affecting Operating Results" contained in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 14, 2002 and in other reports filed by Inktomi with the Securities and Exchange Commission. Inktomi expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any statements in this release.
For more information, contact Verity at info@verity.com or at World Wide Web site http://www.verity.com or call 408-541-1500.
Verity and the Verity logo are registered trademarks or trademarks of Verity, Inc.
Summary: ...Moody's KMV Case Study. “With no manual profiles to fill out, it doesn’t even feel like you’re using a document management system.” WorkSite’s integrated e-mail management makes e-mails as “Interwoven WorkSite paid for itself in the first couple of weeks simply by enhancing our group’s productivity...
Summary: ...through an automated lifecycle. Explains Adam J. Storch, director of Micro Strategies’ ECM practice, “When an invoice is scanned into WorkSite, it pulls vendor information from Oracle Financials to automate the assignment of metadata to invoices. AP personnel, approvers, and select users can also...
Summary: ...automated workflow routing, full audit trails and real-time reporting capabilities.” With the Scrittura-powered OTC Transaction Processing System on board, Scotiabank processes approximately 35,0000 transactions for approximately 500-600 customers each year. For added efficiency in processing documents,...
Summary: ...is also a solid building block on which to add a whole new set of services. Our ultimate aim is to foster a self-service culture across a whole range of potential users in order to reap the significant cost and efficiency benefits that entails. None of this would have been possible on the old system - it...
Summary: ...but also for clients. Interwoven’s close relationship with Microsoft and its integration with the SharePoint server provided yet another key driver in the frm’s decision to move forward with WorkSite, and its personnel and clients will soon reap the benefts. Having fnally found a technology partner...
Summary: ...4 sites, while content is authored by an editorial staff of 300, including both internal and external users. “By bringing third-party providers on to TeamSite via VPN, we can weave them into the same environment as our internal personnel,” Blumfield explains. The system’s enterprise-class scalability...
Summary: ...changes to new product launches, took 4–6 weeks to execute, undermining the speed and agility needed to support the company’s growing business. Cumbersome, time-consuming customer transactions and an old-fashioned look and feel hampered Virgin Mobile’s appeal among its all-important 16–24 year...
Summary: ...pressures and changing business conditions.” “Historically, we would have overlooked small changes in search of a big bang kind of impact, but it’s really a combination of small adjustments that affect the outcome,” says Stagg. “That’s encouraging, because there’s a lot of opportunity across...
Summary: ...conditions and other event data – and send it back to the manufacturers either proactively via “call-home” applications or reactively by sending in “support bundles” on demand for support escalations analysis. Regardless, this data is a potential treasure-trove of information – for product...
This is a small selection of the Autonomy case studies available, please visit our publications site at http://publications.autonomy.com/ for more information.
Summary: ...Tokyo, Utrecht and Washington, D.C. Frequently Asked Questions Q: How much money do partners make? A: MSP partners typically receive 35-45 percent margins on our services alone. Some make substantially more. Q: How does this affect my technical staff? A: Your technical staff can provide better and faster...
Summary: ...and DVR in one powerful package. The system detects and deters fraudulent activity at the point of sale by monitoring user-defi ned transactions such as: Refunds Voids No Sale • • • Discount Keyed Entry Credit Card • • • Separate interfaces are available to allow connection with: Cash registers...
Summary: ...until the resolution of the matter. To meet the obligation, legal teams must quickly scope a case, determine potentially relevant dates, facts, custodians, and data sources, and then ensure that the potentially relevant data is actually preserved. A legal hold notification alone does not meet this obligation....
Summary: ...audio, video or other web-friendly formats. Autonomy Meaning Based Governance Autonomy Social Media Governance aggregates social media content and anticipates the impact of individual interactions. Meaning Based Computing evaluates the meaning of each interaction within the context of the entire corpus...
Summary: ...be preserved produce high rates of failure. Based upon this, some organizations resort to the expensive process of taking physical possession of the mobile professional’s system and imaging the hard drive. This time consuming process is also prone to failure based upon the lack of cooperation from the...
Summary: ...information presents the greatest challenge for most organizations. A reasonable and defensible legal hold process is required as penalties for the failure to preserve potentially relevant information can include evidentiary sanctions, adverse rulings, and substantial fines. An organization must not only...
Summary: ...Management The duty to preserve potentially relevant information presents the greatest challenge for most organizations. A reasonable and defensible legal hold process is required as penalties for the failure to preserve potentially relevant information can include evidentiary sanctions, adverse rulings,...
Summary: ...to the template library within Microsoft Word • Conditions directly editable within Word • All fields available in the document listed, including derived fields • Document structure can be previewed • Highly flexible business logic allows rules and conditions to be easily added • Allows management...
Summary: ...Autonomy Records Manager. Through the power of Autonomy IDOL, Autonomy Records Manager can automatically create taxonomies, file plans or categories based on a corpus of data, import an existing taxonomy, or allow users to train the records categories or file plan; IDOL can automatically identify content...
Summary: ...Autonomy Records Manager. Through the power of Autonomy IDOL, Autonomy Records Manager can automatically create taxonomies, file plans or categories based on a corpus of data, import an existing taxonomy, or allow users to train the records categories or file plan; IDOL can automatically identify content...
Summary: ...applications. For instance, the officer can learn how much data is potentially on hold across all Enterprise systems, or what potential policy violations are occurring. The comprehensive reporting brings critical transparency to the company’s compliance condition. Automated, Policy-driven Classification...
This is a small selection of the Autonomy Product Briefs available, please visit our publications site at http://publications.autonomy.com/ for more information.
Summary: ...the Menlo Park office of the law firm then known as Venture Law Group, now a division of Heller Ehrman. At Venture Law Group, Russ specialized in the formation and counseling of emerging growth companies, and associated transactions such as private equity financings and mergers/acquisitions. Prior to...
Summary: ...COBS 11.8 is focused primarily on the types of activities in which a firm or its personnel engage, as opposed to specific definitions of covered entities. The rule applies to a firm7 : • Receiving, executing, or arranging the execution of client orders • Carrying out transactions on behalf of the...
Summary: ...exposes businesses to potential legal and business ramifications. The consequences could affect the company, executive management, and board members directly, while investors and stock holders suffer from a damaged brand. Regulatory bodies can request that companies reproduce what a certain visitor saw...
Summary: ...Improving the Legal Hold Process: How to Comply with the Preservation Obligation. It offers an automated, enterprise-wide approach to managing legal holds, identifying and notifying custodians, identifying data sources and potentially relevant ESI, and preserving and collecting that ESI in the forensically...
Summary: ...The 4 Keys: Core Competencies to Winning the Compliance and Audit Game. Maintain adequate records to provide fair view of organization’s financial condition and publish financial statements that reflect that condition. Reg D: Maintain reserve balances either with their Federal Reserve Bank or as cash...
Summary: ...lawyers to carefully consider their obligations in retaining electronically stored information.11 Part 2: Document Retention After the Client Matter Is Finished File Organization and Case Management When closing a client matter, organization and handling of the case file and its contents is vital. Key...
Summary: ...or defensible process. They are fraught with risk as potentially relevant data is often missed, misunderstood, overlooked, or deleted; it is irrelevant whether this is intentional. See U.S. v. Philip Morris (2004), In re NTL Sec. Litigation (2007), and In re Intel (2008). The case law and compliance failures...
Summary: ...Contextual Records Management: Managing Risk, Complexity and Cost in Law Firms. Subsequent estimates put the fgure closer to $300,000, including both vendor charges and paralegal fees. Contextual RM eliminates the costs, ineffciencies, duplication of effort and potential for error associated with separate...
Summary: ...basic function of IT. A distributed and mobile workforce, ever more reliant on decentralized data, puts greater pressure on IT to keep technology up and running so workers can remain productive. In effect, there are expanding “points of failure” in regards to protecting worker productivity. 1 “It’s...
Summary: ...will need to manage, and more importantly, analyze ever increasing volumes of information in many different forms, such as text, voice, email and instant message, along with transactional content. • Enforcing complex compliance obligations globally, across jurisdictions, and in multiple languages. • Requirements...
Summary: ...of course address the legal and/or regulatory requirements. Careful consideration could save a company millions in potential fines. Moreover, a well implemented email archiving solution with networked storage will yield substantial returns from the information assets of the enterprise, and deliver additional...
This is a small selection of the Autonomy White Papers available, please visit our publications site at http://publications.autonomy.com/ for more information.
Related Case Studies
