PegasystemsInc. said April 12 that it acquired Atlanta-based OpenSpan Inc., aprivately held software provider of robotic process automation and workforceanalytics software.
OpenSpan's robotic automation and workforce analyticscapabilities complement Pegasystems' customer relationship managementapplication suite and business process management platform, the company said ina news release.
Pegasystems disclosed in a Form 8-K filing that on April 11,the issued and outstanding capital stock, options and warrant of OpenSpan werecanceled and exchanged for or converted into the right to receive in theaggregate up to $52.3 million in cash from which payment of the acquired company'sdebt and transaction expenses and certain of its employee severance, bonus andsimilar compensatory payment obligations, was made.
The merger consideration will be paid to the formersecurityholders of OpenSpan in accordance with the terms of the mergeragreement and will be subject to a customary post-closing adjustment based onthe final determination of closing net working capital. Of the mergerconsideration, $7.6 million will be held in escrow for an 18-month period afterthe closing of the merger as security for the indemnification obligations ofthe former securityholders of OpenSpan and as security for the post-closingadjustment obligations.
A Pegasystems representative said in an email that almostall of the OpenSpan staff will join Pegasystems. OpenSpan CEO Musser willbecome managing director of robotics and workforce intelligence, and the restof the leadership team will have roles in the combined company.
Bridge Street Advisors was Pegasystems' investment bankerand Foley Hoag LLP served as the company's legal adviser in connection with thetransaction.