- Vality`s INTEGRITY Combined with Ascential`s DataStage Creates First-of-a-kind Enterprise Data Integration Product Suite -
WESTBORO, Mass. - April 3, 2002 - Ascential Software Corp. (NASDAQ: ASCL) today announced the completion of its acquisition of Vality Technology Incorporated when Vality shareholders approved the sale of the company to Ascential in a vote held this morning at a special shareholders` meeting in Boston.
"With this unprecedented combination of technologies, we have transformed the competitive landscape for data integration products and greatly enhanced our customers` ability to significantly increase returns on investment from enterprise-wide applications. In a market where many providers supply pieces of a solution, there is now one vendor - Ascential - who can provide total enterprise data integration," said Ascential President Pete Fiore.
The addition of INTEGRITY™, Vality`s data quality and cleansing offerings, complements today`s introduction of Ascential`s MetaRecon® data profiling solution. (See "Ascential Software Introduces MetaRecon Product That Slashes Implementation Time for Data Integration Projects.") Together with Ascential`s DataStage®, these products create for the first time a comprehensive integrated, infinitely scalable enterprise data integration solution.
Mark Atkins, former President and CEO of Vality Technology, has joined Ascential as Vice President responsible for worldwide sales of INTEGRITY, reporting to Mr. Fiore. "Vality`s enterprise data quality solutions are a natural complement to Ascential`s enterprise data integration products, and the combination creates clear market differentiation while it extends Ascential`s leadership position," said Atkins. "Together with the other Vality employees who have joined Ascential, I am very excited by the opportunity to further establish Ascential`s clear leadership of the enterprise data integration market."
With 2001 revenues of $21.2 million, Vality is a recognized industry leader in enterprise quality management and has over 500 customers primarily in financial services, healthcare, manufacturing, telecommunications, retail and government markets. Vality customers include BARCLAYS Plc, Bristol-Myers Squibb, Cingular Wireless, CMP, John Deere, Marks & Spencer, Motorola, National Westminster Bank Plc, Premera Blue Cross, UPS and the US Department of Agriculture.
About the Transaction
Ascential announced on March 12 that it had entered into a definitive agreement to acquire privately held Vality in a cash transaction valued at approximately $92 million and that the merger is expected to be accretive by year-end 2002.
Ascential intends to account for this transaction as a purchase business combination. Costs incurred in acquiring and integrating Vality into the operations of Ascential are expected to approximate $2.5 million, and will be accounted for as part of the purchase price. The company is currently evaluating what portion of the purchase price is to be reflected as a potential second quarter charge for in-process research and development, as is common in technology acquisitions.
Ascential believes the acquisition of Vality Technology meets the acquisition criteria established by the management of Ascential Software -- that it be an evident strategic fit with Ascential, that Ascential be ready to integrate the acquired company into its operations, and that the transaction be accretive to the company`s earnings within one year.
About Ascential Software
Ascential Software Corporation is the leading provider of enterprise data integration solutions to the Global 2000. Customers use Ascential products to turn vast amounts of disparate, unrefined data into reusable information assets that drive business success. Ascential`s unique comprehensive data integration solution enables enterprises to easily collect, profile, validate, cleanse, organize, administer and deliver information assets to realize more value from their enterprise data, reduce costs and increase profitability. Headquartered in Westboro, Mass., Ascential has offices worldwide and supports more than 1,800 customers in such industries as telecommunications, insurance, financial services, healthcare, media/entertainment and retail. More information on Ascential Software can be found on the Web at www.ascentialsoftware.com.
This release contains forward-looking statements based on current expectations or beliefs, as well as a number of assumptions about future events, and these statements are subject to important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements in this release address a variety of subjects including, for example, the expected functionality of Ascential`s products and technology, opportunities for Ascential`s customers to increase the return on their investments in their enterprise-wide applications, the impact of Ascential`s products on certain business initiatives, costs incurred in connection with the acquisition of Vality, and incremental revenues and the impact on earnings attributable to the acquisition of Vality. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: risks relating to Ascential`s sale to IBM of its database business, the ability of Ascential to expand its market share, growth rates for the information asset management market, general business conditions in the software industry, the technology sector, and in the domestic and international economies, rapid technological change in the markets served by Ascential, dependence on international operations, and difficulties that Ascential may experience integrating technologies, operations and personnel of completed or future acquisitions. For a detailed discussion of these and other cautionary statements, please refer to the filings made by Ascential with the Securities and Exchange Commission, including, without limitation, the most recent Annual Report on Form 10-K. Ascential disclaims any intent or obligation to update any forward-looking statements made herein to reflect any change in Ascential`s expectations with regard thereto or any change in events, conditions, or circumstances on which such statements are based.
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