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MOTIVE COMMUNICATIONS AND BROADJUMP TO COMBINEMarket Leaders for Intelligent Service and Broadband Software Join to Provide End-to-End Service Infrastructure for Technology and Communications IndustriesAUSTIN, TX, November 7, 2002 - Motive Communications, Inc. (www.motive.com), the leading provider of intelligent service software, and BroadJump, Inc. (www.broadjump.com), the leading provider of broadband software for DSL, cable, and wireless broadband providers, today announced the two companies have signed a definitive agreement for Motive to acquire BroadJump in a stock-for-stock transaction. The two companies enter the deal with significant business momentum, creating combined revenue and profitability results that few software companies achieve. On a combined basis, the companies will have in excess of $100M in revenues in 2002, and more than $100M in assets. Both Motive and BroadJump have been profitable for the last two quarters and expect to be profitable from day one of the combined operations. The combined company will be the leading provider of comprehensive service infrastructure software for a customer base of the world's leading technology and communications service providers that includes 3Com, AT&T Broadband, Bell Canada, BellSouth, British Telecommunications, Charter Communications, Cox Communications, EarthLink, EDS, Fujitsu, Hewlett-Packard, Hyperion Solutions, Lawson Software, Microsoft Business Solutions, NTL, Road Runner, SBC Communications, Telewest, TELMEX, Time Warner Cable and many others. Motive's intelligent service software, currently deployed on more than 12 million high-technology products worldwide, enables companies to automate a wide range of product service and support processes remotely over the Internet. Motive solutions are embedded into the hardware, software and service offerings of over 50 enterprise and consumer technology companies worldwide. In the communications market, Motive is the leading provider of intelligent service solutions that enable service providers to automatically fix problems and deliver proactive support assistance throughout the entire customer lifecycle. Using Motive, communications providers are able to significantly reduce the number of on-site visits, phone queries and the length of phone conversations required to resolve customer support inquiries, lowering deployment and support costs and improving the overall subscriber experience. BroadJump creates service infrastructure software for intelligent broadband networks. By automating the interaction between service providers, content providers and subscribers at essential points in the consumer lifecycle, BroadJump's solutions enable the delivery of revenue-generating content and applications over broadband, while reducing the costs associated with deploying those services. BroadJump provides the market leading solution for subscriber activation, enabling over 70% of the North American cable and DSL providers and supporting in excess of 24,000 installations daily. In the last two years, the needs of communications providers have evolved from an early focus on subscriber acquisition and activation to a focus on cost-effective service and subscriber management, and now attention is turning to value-added services to deliver revenue growth. At the same time, there is an increasing demand for a single source solution to address all of these needs across the customer lifecycle. The combined product portfolio from Motive and BroadJump addresses this demand with more than twice as many offerings as any other vendor and delivers the only end-to-end service infrastructure available. In addition, the combined company will have the largest number of broadband customers, the largest installed base of end users, and the largest number of dedicated specialists focused on intelligent service for communications companies. "The momentum of our two companies, the growth opportunity in our markets, our complementary product visions and our synergistic company cultures combine to represent a unique opportunity to lead the service infrastructure software market," said Scott Harmon, president and chief executive officer of Motive Communications. "Together, we are the strategic vendor to 21 of the largest global service providers. Few companies in today's economic climate can boast the performance that both Motive and BroadJump have delivered, and we fully expect this to be a powerful combination." "The combination of Motive and BroadJump creates a significant presence in the broadband software industry," said Sanjay Mewada, director, telecom software strategies at Yankee Group. "The product fit is ideal, the market need for such a solution is real, and the benefits to the service providers are tangible. The combined company will not only be a market leader in their space, but the combined offering will enable broadband providers to deploy a complete end to end solution addressing the entire customer lifecycle." Kip McClanahan, president and chief executive officer of BroadJump, said, "The combination of BroadJump's market-leading activation solutions with Motive's proven intelligent service solutions creates a last-mile service infrastructure for communication providers that's unmatched in the industry. The result is a company with true critical mass in the communications market. For the first time, a single vendor is capable of providing a solution for activation, support and value-added services to the world's top communication companies." The proposed merger is subject to compliance with certain regulatory requirements, but has received approval from the disinterested members of the boards of directors of both companies. The companies anticipate closing in December 2002. About BroadJump BroadJump is the leading provider of solutions and services for DSL, cable, and wireless broadband providers. By automating the interaction between service providers, content providers and subscribers at essential points in the consumer lifecycle, BroadJump's solutions enable the delivery of revenue-generating content and applications over broadband, while reducing costs associated with deploying those services. Founded in 1998, BroadJump is headquartered in Austin, Texas with 10 offices located throughout the world. BroadJump's U.S. customer list includes such market leaders as Adelphia Communications, BellSouth Corporation, Charter Communications, Cox Communications, Road Runner, SBC Communications, Sprint and Time Warner Cable. International service providers that use BroadJump's solutions include Aliant Telecom, Bell Canada, Manitoba Telecom Services Inc., NTL and TELUS. About Motive Motive Communications, Inc. provides intelligent service solutions for the world's leading digital brands. Motive's industry leading software and service expertise enable technology innovators to create a new generation of "smart products" that deliver service as an integral part of the user experience. Using Motive, world-class digital brands such as 3Com, Bell Canada, British Telecommunications, Corporate Express, Fujitsu, Hewlett-Packard, Hyperion, Lawson Software, Microsoft Business Solutions, Telewest and Warranty Corporation of America are transforming their products and turning service from a cost center into a key competitive advantage. Motive was founded in May 1997 and is backed by funding from leading venture capital firms and private investors. For more information, visit www.motive.com. The Motive logo, Motive Communications, Inc., Motive ServiceNet Infrastructure, Intelligent Service Delivery and all other product or technical names are trademarks or registered trademarks of Motive Communications, Inc. All other products or services mentioned herein are trademarks of their respective holders. Editorial Contact: David Gibbs Motive Communications (512) 339-8335, ext. 2502 top of page |
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