Acquisition Extends Leadership in App Dev, Deployment and Integration
with Cross-Platform Tools and Technology
BEDFORD, Mass.--(BUSINESS WIRE)--
Progress
(NASDAQ: PRGS), announced today that it has completed its acquisition of
Telerik AD, a provider of tools and technologies to address the entire
application development lifecycle. Through this acquisition, Progress
will now provide comprehensive cloud and on-premise platform offerings
that enable developers to rapidly create beautiful applications, driven
by data for any web, desktop or mobile platform. The acquisition builds
on Progress' strong heritage of enabling developers to rapidly create
data-driven, device and platform agnostic applications.
Progress acquired Telerik for an aggregate purchase price of
approximately $262.5 million. Progress funded the purchase price from a
combination of existing cash resources and a $150 million term loan,
which is part of a new $300 million term and revolving credit facility
with JPMorgan Chase Bank, N.A. and a syndicate of other lenders. In
addition, a portion of the purchase price payable to Telerik's founders
and certain other key employees is payable in restricted stock units,
subject to a vesting schedule and continued employment.
Developer-Driven Products
Telerik, which will be known as Telerik: a Progress Company, has been at
the forefront of innovation for more than twelve years, enabling
developers at more than 450 of the Fortune 500 to deliver best-in-class
web, desktop and mobile applications. Customers that deploy Telerik
tools and technologies in combination with Progress solutions for
development, deployment and integration will benefit from app dev
support, at every level—from a clean UI to data integration and cloud
services—across .NET, JavaScript, NodeJS, and ABL.
Adding Telerik® products to the Pacific™ Platform as a Service (PaaS)
will enable Progress to create a very powerful developer experience, not
only by offering tools to build highly customized user interfaces, but
also to help relieve the complexity of managing back-end services.
Telerik's cloud-based mobile application development platform, which has
been named to the "Visionary" category of Gartner's Magic Quadrant for
Mobile Application Development Platforms, strongly complements Progress'
Rollbase® and Modulus™ product offerings, providing a full lifecycle
industry-best mobile application development platform for JavaScript
developers.
Progress Further Enhances Visionary Leadership Team
In addition to a synergistic product portfolio, the acquisition combines
two talented teams of industry visionaries. Under the leadership of CEO
Phil Pead, Progress has appointed several Telerik executives to
senior-level positions. Telerik co-CEO and co-founder, Vassil Terziev
has become Chief Innovation Officer, and co-CEO and co-founder Svetozar
Georgiev has become Senior Vice President of Application Platforms for
the Application Development and Deployment business unit. Dimitre
Taslakov, Chief Talent Officer for Telerik, will become Chief Talent
Officer for the overall Progress business. All three individuals will
serve on the company's executive committee.
Supporting Quotes:
Phil Pead, President and Chief Executive Officer at Progress, said:
"Developers have more freedom than ever before. But there are inherent
challenges—platform preference, cross functional capabilities,
competitive and customer pressure to deliver the most attractive, yet
fully-functional apps that work across the myriad devices available
today. Through the Telerik acquisition, Progress is easing the
development burden by becoming the preferred destination for the entire
developer community. In addition to stellar products, including Telerik
DevTools, Telerik Platform and Telerik Sitefinity®, Telerik brings with
it the people that made Telerik great—those that understand the needs of
its community and can keep pace with the highly-diverse and demanding
world of application development. The knowledge, spirit and passion that
this organization brings to Progress will undoubtedly impact us, our
customers and partners in a highly-positive way."
Vassil Terziev, Chief Innovation Officer at Progress, Co-Founder and
formerly Co-CEO at Telerik, said: "Joining the Progress executive
management team is the next step in a journey for us that has been
nothing short of amazing. We've been true partners to more than 130,000
customers for more than twelve years. In our new capacity at Progress,
we will be able to leverage this experience in building a high-growth,
successful organization and deliver amazing value to our combined
customer base."
Leonard Nagel, SVP of Technology and Services at Suncoast Solutions,
said: "We are thrilled that Progress and Telerik are joining forces and
hope other partners and customer dev teams see the same value and
successes that we've seen using both company's industry leading tools.
As a healthcare industry solutions provider, it's life-critical that we
provide seamless customer care across lines of business. We've used the
Progress® OpenEdge® product to build and manage the back-end of our
SaaS-based (EHR) Electronic Health Record applications and are also
using Telerik's Kendo® product to bring our application experience to a
whole new level for our customers. We look forward to continuing our
path to innovation with the combined organization."
Additional Resources
Progress
Corporate Blog
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LinkedIn
and Google+
About Progress Software Corporation
Progress
Software Corporation (NASDAQ: PRGS) is a global software company
that simplifies the development, deployment and management of business
applications on-premise or in the cloud, on any platform or device, to
any data source, with enhanced performance, minimal IT complexity and
low total cost of ownership. Progress Software can be reached at www.progress.com
or 1-781-280-4000.
About Telerik AD
Telerik
empowers its customers to create compelling app experiences across any
screen. Its end-to-end platform uniquely combines industry-leading UI
tools with cloud services to simplify the entire app development
lifecycle. Telerik tools and services can be adopted individually or as
a platform and seamlessly integrated with other popular developer
solutions. More than 130,000 customers from 60,000 organizations in 94
countries depend on Telerik products, including more than 450 of the
Fortune 500®, academic institutions, governments and non-profits. For
additional information about Telerik, please visit telerik.com
or follow @telerik
on Twitter.
Note Regarding Forward-Looking Statements
This press release contains statements that are "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Progress Software has identified some of these
forward-looking statements with words like "believe," "may," "could,"
"would," "might," "should,""expect," "intend," "plan," "target,"
"anticipate" and "continue," the negative of these words, other terms of
similar meaning or the use of future dates.
These statements are based on our current expectations and beliefs
and are subject to a number of trends and uncertainties that could cause
actual events to differ materially from those described in the
forward-looking statements. Reliance should not be placed on any
such statements because of their very nature, they are subject to known
and unknown risks and uncertainties and can be affected by factors that
could cause them to differ materially from those expressed or implied in
the forward-looking statements. We can give no assurance that
expectations will be attained. Risks, uncertainties and other important
factors that could cause actual results to differ from those expressed
or implied in the forward looking statements include: the effects of
disruption from the transaction making it more difficult to maintain
relationships with employees, licensees, other business partners or
governmental entities; other business effects, including the effects of
industry, economic or political conditions outside of Progress
Software's or Telerik's control; transaction costs; actual or contingent
liabilities; uncertainties as to whether anticipated synergies will be
realized; and uncertainties as to whether Telerik's business will be
successfully integrated with Progress Software's business. For
further information regarding risks and uncertainties associated with
Progress Software's business, please refer to Progress Software's
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the fiscal year ended November 30, 2013.
Progress Software undertakes no obligation to update any forward-looking
statements, which speak only as of the date of this press release.
Progress, OpenEdge, Pacific, Rollbase, Modulus, Telerik, Sitefinity, and
Kendo are trademarks or registered trademarks of Progress Software
Corporation or one of its affiliates or subsidiaries. Any other names
contained herein may be trademarks of their respective owners.
Progress
Rachel Godwin, +44 (0) 1344 386387
Rachel.Godwin@progress.com
or
Telerik:
a Progress Company
Erica Burns, 888-3652779 ext. 154
Erica.Burns@telerik.com
Source: Progress Software Corporation
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