Siebel Systems (Nasdaq: SEBL) will issue 11 million shares to buy a vendor of software for electronic financial services.
After market close Monday, Siebel unveiled an agreement to buy Janna Systems, a Canadian company traded publicly on the Toronto Stock Exchange. Under the plan, Siebel would issue about 11 million shares, or 0.497 shares for every Janna share.
Shares of Siebel, the largest seller of software for sales force automation and customer relationship management, traded at 89 in Monday's afterhours activity on the Island electronic communications network.
At Monday's closing stock price of 88.375 for Siebel, the deal values Janna at roughly $975 million. Janna ended Monday's regular trading with a Toronto market capitalization of more than $732 million in U.S. dollars.
Shares of Siebel traded at 89 in Monday's afterhours activity on the Island electronic communications network.
The companies expect the acquisition to qualify as a tax-free pooling of interests and close in the fourth quarter of this year.
Financial services companies use Janna's software to provide and customize electronic offerings for institutional customers. Janna's products would merge with Siebel's own financial services software to create a Web-based suite.
Janna's chairman and CEO, William M. Tatham, would become a Siebel vice president and general manager of the institutional division for Siebel Financial Services.>