Witness Systems Completes Acquisition Of Blue Pumpkin

Customer Inter@ction Solutions, Mar 2005

Witness Systems, a provider of performance optimization software and services, has announced the completion of its acquisition of Blue Pumpkin Software, Inc., a provider of enterprise workforce management solutions. The total purchase price of approximately $75 million consisted of $40 million in cash and 2.1 million shares of Witness Systems' common stock. Solutions from the combined company are intended to offer customers a broader contact center performance optimization capability to include advanced workforce management software. The acquisition expands Witness Systems' software and services by adding forecasting, scheduling, adherence and planning applications. Blue Pumpkin's solutions are intended to extend the breadth and depth of Witness Systems' services offering in workforce optimization.

A key asset and attraction of Blue Pumpkin, it seems, was its employees. As part of employment offers to join the company, Witness Systems' Board of Director Compensation Committee has approved an award of options to acquire up to 800,000 shares of common stock. These options will be awarded to approximately 120 Blue Pumpkin employees. The stock option awards will be made "as promptly as possible following the closing," subject to those employees' commencement of employment.

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