Automated mobile workforce management and optimization solutions ClickSoftware Technologies announced it has entered into a definitive agreement to acquire Xora, a cloud-based market specialist in mobile workforce management, by merger.
Under the terms of the merger agreement, the consideration for the transaction is approximately $14.7 million in cash, plus working capital and cash adjustments.
Based in Mountain View, California, Xora provides software-as-a-service (SaaS) solutions for companies looking to improve productivity and efficiency of an increasingly mobile workforce.
"By combining ClickSoftware's sophisticated, highly configurable offerings for the large and higher end of the midsize enterprise market with Xora's suite of configurable, ready-to-use solutions for the lower end of the midsize and small business market, we achieve the strategic objective to offer a complete portfolio of best-in-class mobile apps for all business roles, in all size companies, in all industry verticals," Moshe BenBassat, ClickSoftware's founder and CEO, said in a statement.
Xora delivers its solutions to more than 130,000 users and is one of North America's largest providers of mobile workforce management solutions. Among the company’s partners are major wireless carriers such as Verizon, AT&T and Sprint. ClickSoftware, which was already managing a large community of mobile workers, will now add the 130,000 users of Xora to its more than 500,000 user base.
"Xora's extensive and long term experience selling packaged apps through the wireless carriers like AT&T, Verizon and Sprint considerably expands our distribution channels," BenBasset said. "We welcome Xora's CEO Anne Bonaparte and her technology-savvy professional team to the ClickSoftware family."
Available through the cloud or on-premise, ClickSoftware’s products incorporate best business practices and decision-making algorithms to manage service operations more efficiently, in a scalable, integrated manner.
A recent report from research firm Frost & Sullivan indicated that the market for mobile workforce management solutions will continue to grow, and estimates that annual North American revenues will grow at a Compound Annual Growth Rate (CAGR) of 40.5 percent to reach almost $3 billion by 2018.
The research also indicated that market penetration remains low, with 45 percent of businesses planning to introduce or expand mobile application deployment over the next three years.
"Our mobile enterprise applications research shows a steady migration of customers toward cloud-based solutions. This deal will accelerate ClickSoftware's ability to satisfy this preference--with both its new and embedded customers. Distribution relationships should also expand in a good way," Jeanine Sterling, principal analyst at Frost & Sullivan, said in a statement. "Xora has created and nurtured strong channel partnerships with Tier 1 wireless carriers, which should nicely complement ClickSoftware's own partner and distribution efforts, providing a mutual opportunity to expand distribution."
Xora was recognized by Frost & Sullivan in 2012 with the Market Share Leadership Award for its StreetSmart application, which helps companies across a wide variety of industries to more effectively manage the activities and performance of their employees in the field.
A company release noted the closing of the acquisition is subject to certain closing conditions and purchase price adjustments, and is expected to occur in the coming weeks.