The Hindu : Business : SumTotal to acquire Pathlore Software

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Friday, Aug 05, 2005

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SumTotal to acquire Pathlore Software

Special Correspondent

HYDERABAD: SumTotal Systems Inc., a Nasdaq-listed learning technology solutions provider, has announced the acquisition of Pathlore Software Corporation for about $48 million. The acquisition is expected to be concluded within three months and of the purchase deal, $29 million would be in cash transaction complimented by four million shares of SumTotal common stock.

Addressing a press conference here on Thursday, SumTotal Senior Vice President (international operations), Sudheer Koneru, said the combination would create the industry's largest learning technology provider with over 1,500 customers. The company focussed on large enterprises traditionally and Pathlore offered services to mid-market segment.

Mr. Sudheer said Pathlore's large customer base included over 100 healthcare organisations as well as government agencies in 38 of the 50 states in the U.S. The acquisition would help increase R&D capacity to bring new innovations to market more rapidly and economically.

The learning management software market was estimated at about Rs. 450 crore and the share of SumTotal was 23 per cent. This was expected to cross the Rs. 100 crore mark following the acquisition. SumTotal logged revenues of $32.6 million during the first half this year.

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