Axway Inc. Merges with Tumbleweed Communications as Parent Company, Sopra Group, Completes Acquisition of Tumbleweed Shares
September 04 2008 - 5:37PM
Business Wire
Following Tumbleweed shareholder and regulatory approvals,
Sopra�Group (Euronext Paris: SOP) and Tumbleweed Communications
Corp. (Nasdaq: TMWD) today completed a merger in which Sopra Group,
via its subsidiary Axway, acquired Tumbleweed. Tumbleweed�s
operations will be combined with those of Axway. Together, Axway
and Tumbleweed will offer integrated collaborative business
solutions to more than 11,000 customers globally. Pursuant to the
merger agreement, each outstanding share of Tumbleweed stock was
converted into the right to receive $2.70 in cash. Tumbleweed's
common stock will cease to trade on the Nasdaq national market at
the close of business today and will be delisted. This merger is in
line with Axway�s and Tumbleweed�s global development strategy. The
complementary geographic positioning of the two companies creates
an experienced provider capable of serving the needs of the largest
multinational corporations in the B2B, SOA, security and
collaborative services domains. Sopra Group funded the transaction
through its existing lines of credit. Given the complementary
nature of Axway�s and Tumbleweed�s businesses, Sopra Group expects
to recognize synergies through both revenue growth and cost
savings.�In 2009, the combined entity of Axway and Tumbleweed
expects to generate revenue of approximately �230 million with an
operating margin between 12-15%. Sopra Group expects this
transaction to be accretive. About Sopra Group One of the leaders
in the European consulting and IT services market, Sopra Group
generated revenue of 1 billion euros in 2007 and has a human and
intellectual resource potential of over 11,000 people. Thanks to a
longstanding culture of excellence and strong sector-specific,
functional and technological know-how, the Group offers its clients
an end to end approach based on a well-honed business model. Sopra
Group�s ambition is to allow its clients to focus on transformation
projects that will give them a competitive edge and help them drive
growth. Sopra Group�s savoir-faire encompasses prior strategic
reflection through to the supervision and implementation of major
systems integration and application outsourcing projects. The Group
also pursues the worldwide deployment of its activities in both
application integration and business process management through its
subsidiary Axway, one of the leading providers of Collaborative
Business Solutions, with a complete range of solutions and
services. For more information, please go to our website
www.sopragroup.com. About Axway Axway is one of the leading global
providers of collaborative business solutions. Axway establishes
the dynamic connections � within and among enterprises � that make
companies easier to do business with. Spanning all industries, over
8400 organizations in more than 100 countries depend on Axway to
manage and control their business-critical information in motion �
improving value chain efficiency, regulatory compliance and quality
of service. Built on a service-oriented architecture (SOA), Axway�s
Synchrony� solutions feature a highly flexible integration and B2B
framework, business and technical analytics, and professional
services. Axway also offers customized solutions for the financial
services, life sciences and automotive industries. Many of Axway�s
solutions are available in a software-as-a-service (SaaS) model. A
subsidiary of Sopra Group, SA, Axway is headquartered in
Scottsdale, Arizona. About Tumbleweed Tumbleweed Communications
Corp. (NASDAQ:TMWD), an industry leader in managed file transfer,
email security and identity validation, provides enterprise-class
solutions to organizations of all sizes. Tumbleweed�s innovative
products enable organizations to effectively manage and protect
business-critical Internet communications, with capabilities that
span secure file transfer, encryption, data loss prevention, and
email security. Tumbleweed has more than 3,300 customers worldwide,
including blue-chip companies across an array of industries such as
technology, retail, finance, healthcare, manufacturing, consumer
packaged goods, telecom, energy, and the U.S. Government. The
world�s most security conscious organizations rely upon Tumbleweed
technology including Bank of America Securities, JP Morgan Chase
& Co., the U.S. Food and Drug Administration, and the U.S.
Department of Defense. Our award-winning products build on 15 years
of R&D and 29 security patents in the U.S. alone � many of
which are licensed by other security vendors. More information can
be found at www.tumbleweed.com.
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