Group 1 Software announced Wednesday that it has entered into an agreement to buy the assets of Sagent Technology Inc., in a deal valued at up to $17 million in cash and debt forgiveness.
Sagent was declared in default on a $7 million loan package last month and announced that it would explore a number of alternatives, including selling the company.
Group One, which will provide Sagent with up to $7 million in bridge financing as part of the deal, expects to add Sagents enterprise information integration and customer data integration technologies to its core data quality and data enrichment solutions.
Group 1 plans to market Sagents extract, transformation and load (ETL) technology as a stand-alone offering, integrated with its data quality solutions. In addition, Group 1s geospatial analysis capabilities will be enhanced with the technology of Sagents Centrus division, Group 1 officials in Lanham, Md., said.
"The acquisition will enable Group 1 to provide an even more comprehensive array of data quality, integration and enrichment technologies that support enterprise operating systems, such as customer relationship management (CRM) and enterprise resource planning (ERP) systems," said Bob Bowen, CEO of Group 1 Software, in a statement.
Bowen also noted that Sagent had resources in place to help Group 1 better reach some overseas markets, particularly in the Far East.
"We are very excited about the Sagent transaction, which will provide us with advanced and powerful technology to complement our own, plus a number of highly talented individuals and an enhanced global presence," he said.
The deal must be approved by Group 1s directors and Sagents stockholders.
Most Recent Stories by Dennis Callaghan: