Siebel Systems to Acquire edocs, Inc.

Siebel Systems, Inc. (www.siebel.com, a provider of business applications software, today announced that it has signed a definitive agreement to acquire Natick, Massachusetts-based edocs, Inc., a leading provider of eBilling and customer self-service software solutions.

"Our acquisition of edocs will provide global organizations with powerful solutions that can dramatically increase the efficiency of their service and billing channels, reduce call center costs and enhance customer satisfaction and retention," said J. Michael Lawrie, CEO, Siebel Systems.

The acquisition is expected to expand Siebel's products and services offerings in the growing $3 billion market for eBilling and customer self-service applications.

Through the proposed acquisition, Siebel expects to deliver one of the industry's most comprehensive self-service solutions, enabling companies to improve their customers' experience and reduce costs and churn.

The proposed acquisition will also strengthen Siebel Systems' offerings of multi-channel customer-facing solutions. The acquisition is fully aligned with Siebel's growth strategy to provide a broader and deeper range of front-office solutions that deliver demonstrable business value for its' customers.

Under the terms of the deal, Siebel Systems will initially pay $115 million in cash to edocs shareholders. Additional payments, based on achieving revenue and other contractual milestones, may be paid in 2006.

Siebel Systems plans to deliver an integrated solution that will leverage the domain expertise, complementary technologies and successful track record of both companies and initially target the communications, financial services, healthcare and energy industries.

By integrating its' market-leading CRM and business intelligence solutions with edocs' comprehensive eService, self-service and eBilling platform, Siebel Systems will be able to provide one of the industry's most complete and effective customer self-service solutions to help companies drive higher levels of customer satisfaction and adoption.