Peregrine to buy Tivoli service desk suite
Tivoli Service Desk employees and customers will transition to Peregrine.
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SAN DIEGO - Peregrine Systems Monday confirmed it will by year-end purchase Tivoli Systems' Service Desk suite of products for $105 million.
The announcement confirms news of the deal reported (Tivoli to sell service desk suite to Peregrine) by Network World last week. Peregrine will pay $45 million in cash and three million shares of common stock to acquire the Tivoli software suite, which includes Problem Management, Change Management and Asset Management products. Peregrine also will take over sales and maintenance contracts for the Service Desk products.
Peregrine says it intends to support the 1,000-plus Tivoli customers for at least 18 months, but customers will be offered incentives to migrate to Peregrine products, such as ServiceCenter and AssetCenter. About 120 Tivoli Service Desk developers will be offered positions at Peregrine's development labs in Indianapolis.
According to market research firm IDC, Tivoli claimed 9.5% of the help desk market share in 1998 and made about $93 million in license and maintenance revenue off those products. The same research shows Peregrine with 5.2% market share and $51 million in revenue. Computer Associates dominated the market with 27.9% market share and $274.6 million in revenue, followed by Remedy, then Tivoli, Network Associates and Peregrine.
In a conference call, Peregrine CEO Steve Gardner explained Peregrine will "rapidly unify the product lines" and offer customers a "logical upgrade path," while the company continues to offer maintenance and support for the Tivoli software. Tivoli CEO David Murphy said the deal allows both companies to do "what they do best" and the transition would appear seamless to customers because they will be "supported by the same individuals at the same site in Indianapolis."
Tivoli Service Desk customers can contact Tivoli at 512- 436-4501 or Peregrine at 866- 863-8569 for more information about their impending transition.
Peregrine: www.peregrine.com
Tivoli: www.tivoli.com
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