TigerLogic Announces Definitive Agreement to Divest Its D3 MDMS Business for Approximately $22 Million to Rocket Software
IRVINE, Calif., Oct. 16, 2013 /PRNewswire/ TigerLogic Corporation, (TIGR), today announced the signing of a definitive agreement to divest its Multidimensional Database Management Systems ("MDMS" or "D3") business to Rocket Software, Inc. ("Rocket Software") for gross proceeds of approximately $22 million in cash. The sale is expected to close within the fourth calendar quarter of 2013, and is subject to satisfaction of customary closing conditions.
"TigerLogic has evolved rapidly over the last 12 months, and has taken actions designed to capture the fast-growing demand for cloud platforms enabling mobile and social solutions. The sale of the MDMS business is a further step toward our focus on extending the growth and reach of the Postano and Omnis platforms," said Richard Koe, President and CEO of TigerLogic. "The closing of this transaction will allow TigerLogic to concentrate on initiatives that support our vision of enabling brands and companies to integrate curated mobile and social solutions across multiple digital environments. Moreover, the divestiture of the MDMS assets will provide additional resources to support stronger sales growth and further development of our social and mobile businesses."
"This is a logical next step for our business and a strategic decision that should enable the D3 business to flourish as well," continued Koe. "TigerLogic selected Rocket Software because of its knowledge of the MDMS space, and its deep commitment to support our D3 partners and customers. Rocket Software is known for its strong operational expertise, particularly in corporate divestitures that require seamless transfers of significant business operations, which is an imperative for our D3 partners and customers. To that end, we also announce today that John Bramley, TigerLogic's Vice President, Operations, agreed to join Rocket Software, effective upon the closing, as the business executive responsible for managing the development and evolution of D3."
"This is a good and not surprising move for TigerLogic, as it allows them to concentrate their energy and resources on the core, strategic components of their business in order to drive further innovation and growth," said Scott Smith, General Partner, Viant Group, Investment Advisor to TigerLogic in this transaction.
A conference call to discuss the signing of the agreement is set for today at 5:30 p.m. Eastern Time.
The call can be accessed by dialing 1-877-481-4996 (Domestic) or 1-518-444-5106 (International), and by providing the operator the conference ID number 85790465.
A taped rebroadcast of the call will be available approximately two hours after the call through October 23, 2013. To access the taped rebroadcast, dial 1-855-859-2056/1-800-585-8367 (Domestic) or 1-404-537-3406 (International), and enter security code 081213 and conference ID number 85790465.