CRM Consolidation: Pegasystems Buys 1mind
The Cambridge, Mass., firm will pay $3.6 million in stock for the technology and customers of its Concord, N.H., rival.In a merger of New England customer relationship management (CRM) firms, Pegasystems
, of Cambridge, Mass., is buying 1mind, of Concord, N.H., for $3.6 million in stock.
Up to $6 million of additional Pegasystems' stock may be issued in 2003, as additional consideration.
The pickup enhances Pegasystems' business with health insurers, most notably with Blue Cross Blue Shield (BCBS). In fact, following the acquisition, Pegasytsems will count 18 percent of BCBS health insurers as clients.
"This acquisition reflects the trend toward providing full function, industry-specific CRM product suites," said Joanne Galimi, a Gartner analyst. "More importantly, it helps expand the use of rules-based process automation, a key requirement for profitable, enterprise-wide customer service automation."
The companies CRM offerings will be combined. In addition, Pegasystems will continue to offer 1mind's sales and marketing, underwriting and enrollment applications.
"The integration of 1mind with Pegasystems provides our health care and insurance customers with access to reliable technology and underwriting, customer service and actuarial expertise," said Tom Congoran, 1mind's president.
Shares of PEGA rose 0.3, or 5 percent, to 5.85 on Tuesday. In the last 52 weeks, the issue has ranged from 1.9375 to 6.25.