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Home > News > March 2004 > 22-Mar-04

Docent and Click2learn complete merger and launch SumTotal Systems

Docent, Inc.and Click2learn, Inc. have announced the completion of their merger and the launch of SumTotal Systems Inc. created by this business combination.

At special stockholder meetings held on March 18, 2004, the stockholders of Click2learn and Docent respectively approved the merger of each of the two companies with separate subsidiaries of the new company, SumTotal Systems. As a result of the transactions, each share of Click2learn common stock has been converted into the right to receive 0.3188 shares of SumTotal Systems common stock and each share of Docent common stock has been converted into the right to receive 0.7327 shares of SumTotal Systems common stock, such that the former stockholders of Click2learn and Docent own approximately 52% and 48%, respectively, of SumTotal Systems as of the closing.

The new company has a new tagline, "Accelerate Performance. Accelerate Profits." Andy Eckert, SumTotal CEO, explains, "Our experience of working with hundreds of the world's leading organisations has confirmed that learning technology is most effective when it focuses squarely on improving tangible and measurable business results. With the most comprehensive technology suite on the market today, we feel the new SumTotal brand captures the essence of our new company: improving our customer's bottom line. I believe this is an extremely compelling value proposition for our customers and I'm excited to have the opportunity to bring it to the marketplace now that the merger is complete."

"Learning technology is now widely viewed as 'mission critical' in organisations, whether they are using it to launch new products, improve channel effectiveness, accelerate sales force readiness, increase customer satisfaction, educate a distributed workforce or ensure compliance with governmental regulations," said Kevin Oakes, SumTotal President. "Bringing together the best assets of both Docent and Click2learn uniquely positions us to help customers tackle these issues head-on and to move their organisations to a whole new level of productivity and financial performance. That's what the name SumTotal is all about. We offer the total or complete solution suite to accelerate bottom-line performance and profit, and represent the sum total of benefits a customer realises by working with us. Many of our competitors are intent on selling a technology or product feature; we are intent on selling an outcome."

Trace Urdan, Senior Research Analyst for ThinkEquity Partners, commented, "Selecting a learning technology provider continues to be in the path of progress for most large organisations, and it continues to move from a departmental decision to an enterprise-wide initiative. Separately, Click2learn and Docent are already two of the most innovative and reliable companies in the space. Combined as SumTotal, the company is now the most financially viable company focused in this sector and clearly will be a safe bet for large organisations seeking a long-term partner. In addition, investors are looking for companies that have the resources to lead the industry through product innovation, solid execution, and financial stability. SumTotal is positioned to be one of those companies."

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