Pivotal Corp. is currently reviewing Onyx Corp.'s unsolicited takeover bid and is promising to announce how it intends to proceed in "due course."
The Bellevue, Wash.-based Onyx has asked for a response by 2 p.m. Friday. Yesterday, it made an all-stock play for Pivotal, which last month announced it would be acquired by an investment company in a cash deal.
A Pivotal spokeswoman told SearchCRM.com Wednesday that CEO Bo Manning was returning from India, where the company has a sizable workforce, and would assemble the board of directors to review the offer. The Vancouver, British Columbia-headquartered Pivotal had no further comment until it had time to study the Onyx deal.
Meantime, Oak Investment Partners, the Palo Alto, Calif.-based private equity firm that agreed to acquire Pivotal last month, said its $48 million cash offer for Pivotal is the safer bet. After its proposed acquisition, Oak Investment plans to merge Pivotal with e-service software provider Talisma Inc.
Fredric Harman, general partner at Oak, said in a statement that he's confident shareholders will realize "the cash and certainty of the Oak offer dramatically outweigh the risks associated with the conditional proposal from Onyx funded with a speculative currency in the form of Onyx stock."
Harman went on to call Onyx's stock "highly-volatile and thinly-traded."
Onyx is proposing to swap 0.475 shares of Onyx for each Pivotal share. It also intends to eventually merge the companies' midmarket CRM product lines.
Onyx would incur a $1.5 million fee for breaking up the Oak deal.
Combined, Onyx and Pivotal would be second to Siebel Systems Inc. among the pure-play CRM vendors, with $110 million in revenue and 2,600 customers. If the Onyx acquisition is successful, analysts expect cost synergies to result in much lower operating expenses.