Pegasystems (PEGA) Has Not Had Merger Talks with salesforce.com (CRM)

October 19, 2016 11:49 AM EDT

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In response to questions if the company is for sale after showing up on salesforce.com's (NYSE: CRM) hacked takeover target list, Pegasystems (NASDAQ: PEGA) told StreetInsider.com it has not had any discussions with Salesforce on the topic of an acquisition.

From the company:

"Pega has a long history of delivering distinctive technology and best-in-class customer engagement solutions. While flattering to appear on another organization’s acquisition target list, we have not had any discussions with Salesforce on the topic of acquisition. Our strategy remains focused on continuing to grow our business on our own terms for the maximum long-term benefit of our clients, business partners, shareholders, and employees. Far too many M&A in enterprise software today routinely lead to significant customer disruption, stifled innovation, stalled product roadmaps and eroded ecosystem value."



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Comments

Pegasystems & Salesforce
Bob on 2016-10-20 13:45:29
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Pegasystems would be an excellent buy for Salesforce.
1) Application build: Pegasystems has a business process engine that allows its customers to create applications 6X faster than then competition.
2) Mindshare: Salesforce has the mindshare, but the Pegasystems product is truly awesome and Salesforce can benefit from their process driven technology to expand into other areas.
3) Proven ability to execute technically: The company is proven and has been around for 33 years
4) Culture: The culture is a 180% difference from the hard driving Salesforce management.
5) Competition: The issue Pegasystems is having is trying to position the product against companies like Salesforce and Microsoft Dynamics.
6) Dysfunction: There is dysfunction between the Future-Driven CEO Founder and the sales ranks. The Founder has a defined vision that is excellent and he has the software and technical staff to execute on that vision. The problem comes from sales management who is content on being mediocre. Alan Trefler, CEO is great and has built a great company with great technical advantages. The sales management complains that Treffler does not know how to market and just expects the product to speak for itself. (This was a bit confusing because I watched the video from Pegaworld 2016 and it was awesome!) This is a major disconnect. When I asked the VP of Corporate Markets how he plans to get to the decision makers before Salesforce and Microsoft Dynamics, I got a blank stare. Then he said, "what would you do?" (That pretty much summed it up.) In my opinion, if this technology can be decoupled from the Pegasystems Sales Teams, there will be nothing but goodness that comes out of it for whoever buys this company.


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