Siebel Systems acquires OnTarget, a provider of training programs and professional services for sales and marketing, in a stock-for-stock deal worth $259 million.
Under the deal, Siebel said it will combine OnTarget's suite of training programs and professional services for sales and marketing with Siebel customer relationship management (CRM) applications, or software that automates a company's sales, marketing and customer service needs.
Under terms of the deal, each outstanding share of OnTarget common stock will be exchanged for approximately 0.3078 of Siebel stock. This will result in approximately 3.7 million additional Siebel shares worth about $259 million based on Siebel's closing price yesterday of $70, the companies said.
San Mateo-based Siebel said it has partnered with OnTarget since 1996 to integrate its software that helps companies train salespeople into Siebel's product line. To date, the Siebel Target Account Selling module has been licensed to more than 100,000 salespeople. The companies said they will deliver an integrated product by the first half of next year.
Atlanta-based OnTarget will operate as a wholly owned subsidiary of Siebel, the companies said. OnTarget chief Alston Gardner will become the vice president and general manager of OnTarget.
The acquisition must be approved by OnTarget's shareholders. The transaction is expected to close by year's end.