SAN MATEO, Calif. and REDWOOD CITY, Calif., May 3 /PRNewswire-FirstCall/ -- Today SuccessFactors, Inc. (Nasdaq: SFSF) announced a definitive agreement to acquire CubeTree, Inc. a visionary leader in the rapidly growing social business software category. SuccessFactors is acquiring the company for $20 million in SuccessFactors stock at closing plus a contingent cash payment three years from closing to bring the value of the total consideration to $50 million. There is no contingent cash payment if the value of the stock issued exceeds $50 million at any point during the three year period and to the extent the holders have disposed or hedged their holdings. The contingent consideration will be recorded at fair value and marked-to-market each quarter through the statement of operations.
"Unlocking Workforce Productivity --- CubeTree is a key to unlocking this potential. Every CEO is interested in releasing the biggest leverage point in all organizations which exists between the functional groups . . . not being in the functional groups," said SuccessFactors CEO Lars Dalgaard. "CubeTree makes those connections happen and creates a sticky, daily use, digital work pad that is relevant and fun for any type of work issue across the organization. CubeTree is key to accelerating SuccessFactors' BizX opportunity and expand our leadership. Putting the best Enterprise Social Software product, on our most secure, and most scalable and deployed Enterprise Cloud platform will be irresistible to organizations wanting to tap into Social Software. We believe this is everyone. With CubeTree's powerful social business platform, you get something that's never happened in enterprise software --- a platform that can literally change the way the world works. We'll start by introducing it immediately to our 8 million deployed seats."
The acquisition will strengthen SuccessFactors' core Business Execution Software strategy and directly align with its mission of helping companies get work done every day. It is central to the Business Alignment product category within the Business Execution Software suite.
SuccessFactors is the world's most widely deployed cloud business software. It is used by more than 8 million deployed seats, 3,000 companies and just about everyone in a company. CubeTree makes social business software that integrates communication, content sharing and collaboration within a single platform to create massive efficiencies in everyday work. By combining CubeTree's innovation with SuccessFactors' ubiquitous Business Execution platform, SuccessFactors is putting social software to work to accelerate business execution for all companies.
"Social software is redefining the way people communicate and share ideas. CubeTree's focus has always been to improve employee execution by combining social networking with tools built for enterprises," said Carlin Wiegner, CEO and Co-Founder of CubeTree. "We now have an incredible opportunity to integrate CubeTree's collaboration features with SuccessFactors' core applications and to engage millions of SuccessFactors users at thousands of companies with enterprise-wide social networks."
CubeTree solves a critical challenge in business execution: how individuals and teams communicate, share ideas and come together across organizational silos and geographies to get work done. CubeTree provides a secure, integrated social business solution that gives companies:
- Instant communication, collaboration and sharing: Everyone in a company can within minutes create rich profiles and begin engaging with everyone in their organization to get work done, find co-workers who can help, and share insights as they happen.
- Rich Employee Profiles that provide deep insights into skills, talents, interests and expertise.
- Powerful Team Execution through workspaces that enable groups to immediately gather around a project, collaborate, share documents and get work done.
- Executive Dashboards that provide rich insights into the pulse of how a company is executing everyday.
All of these features are delivered in an enterprise class, secure environment, giving companies multiple levels of data encryption and privacy controls to ensure that sensitive corporate data and communications are secure and protected.
The acquisition is expected to close in Q3 2010, subject to customary closing conditions. The contingent payment is subject to holding period and other conditions.
For more information please visit http://www.successfactors.com/cubetree/.
CubeTree is an award-winning social business platform that enables employees to connect, communicate and collaborate efficiently and securely. CubeTree is designed for enterprises ranging from start-ups to Global 500 companies. Founded in 2008, CubeTree is a private company funded and is headquartered in Redwood City, Calif. For more information, please visit www.cubetree.com.
About SuccessFactors, Inc.
SuccessFactors is the global leader in Business Execution Software. The SuccessFactors Business Execution Suite improves business alignment and people performance to drive breakthrough results for companies of all sizes, anywhere in the world. More than 8 million users and 3,000 companies leverage SuccessFactors every day. To learn more, visit: www.successfactors.com.
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Safe harbor" statement under the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are SuccessFactors' current expectations and beliefs.
These forward-looking statements include statements about benefits of the proposed acquisition and product integration and performance. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include: risks relating to the integration of the products, technology and operations of CubeTree with SuccessFactors, the fact that the business execution market is at an early stage of development and may not develop as rapidly as we anticipate; competitive factors; our ability to develop, and market acceptance of new services; our ability to continue to sell our services outside the HR area; the impact of unforeseen expenses or difficulties in development and marketing the combined products; and general economic conditions worldwide. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.
Further information on these and other factors that could affect our financial results is included in the section entitled "Risk Factors" in our Annual Report on Form 10-K and in our most recent report on Form 10-Q and in other filings we make with the Securities and Exchange Commission from time to time.
These documents are or will be available in the SEC Filings section of the Investor Relations section of our website at www.successfactors.com/investor. Information on our website is not part of this release.
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SOURCE SuccessFactors, Inc.