December 2, 2014Progress Completes Acquisition of Telerik and Expands Executive Management Team Acquisition Extends Leadership in App Dev, Deployment and Integration with Cross-Platform Tools and Technology
BEDFORD, Mass.--(BUSINESS WIRE)-- Progress (NASDAQ: PRGS), announced today that it has completed its acquisition of Telerik AD, a provider of tools and technologies to address the entire application development lifecycle. Through this acquisition, Progress will now provide comprehensive cloud and on-premise platform offerings that enable developers to rapidly create beautiful applications, driven by data for any web, desktop or mobile platform. The acquisition builds on Progress strong heritage of enabling developers to rapidly create data-driven, device and platform agnostic applications.
Progress acquired Telerik for an aggregate purchase price of approximately $262.5 million. Progress funded the purchase price from a combination of existing cash resources and a $150 million term loan, which is part of a new $300 million term and revolving credit facility with JPMorgan Chase Bank, N.A. and a syndicate of other lenders. In addition, a portion of the purchase price payable to Teleriks founders and certain other key employees is payable in restricted stock units, subject to a vesting schedule and continued employment.
Developer-Driven Products
Telerik, which will be known as Telerik: a Progress Company, has been at the forefront of innovation for more than twelve years, enabling developers at more than 450 of the Fortune 500 to deliver best-in-class web, desktop and mobile applications. Customers that deploy Telerik tools and technologies in combination with Progress solutions for development, deployment and integration will benefit from app dev support, at every level from a clean UI to data integration and cloud services across .NET, JavaScript, NodeJS, and ABL.
Adding Telerik products to the Pacific Platform as a Service (PaaS) will enable Progress to create a very powerful developer experience, not only by offering tools to build highly customized user interfaces, but also to help relieve the complexity of managing back-end services. Teleriks cloud-based mobile application development platform, which has been named to the Visionary category of Gartners Magic Quadrant for Mobile Application Development Platforms, strongly complements Progress Rollbase and Modulus product offerings, providing a full lifecycle industry-best mobile application development platform for JavaScript developers.
Progress Further Enhances Visionary Leadership Team
In addition to a synergistic product portfolio, the acquisition combines two talented teams of industry visionaries. Under the leadership of CEO Phil Pead, Progress has appointed several Telerik executives to senior-level positions. Telerik co-CEO and co-founder, Vassil Terziev has become Chief Innovation Officer, and co-CEO and co-founder Svetozar Georgiev has become Senior Vice President of Application Platforms for the Application Development and Deployment business unit. Dimitre Taslakov, Chief Talent Officer for Telerik, will become Chief Talent Officer for the overall Progress business. All three individuals will serve on the companys executive committee.
Supporting Quotes:
Phil Pead, President and Chief Executive Officer at Progress, said: Developers have more freedom than ever before. But there are inherent challenges platform preference, cross functional capabilities, competitive and customer pressure to deliver the most attractive, yet fully-functional apps that work across the myriad devices available today. Through the Telerik acquisition, Progress is easing the development burden by becoming the preferred destination for the entire developer community. In addition to stellar products, including Telerik DevTools, Telerik Platform and Telerik Sitefinity , Telerik brings with it the people that made Telerik great those that understand the needs of its community and can keep pace with the highly-diverse and demanding world of application development. The knowledge, spirit and passion that this organization brings to Progress will undoubtedly impact us, our customers and partners in a highly-positive way.
Vassil Terziev, Chief Innovation Officer at Progress, Co-Founder and formerly Co-CEO at Telerik, said: Joining the Progress executive management team is the next step in a journey for us that has been nothing short of amazing. Weve been true partners to more than 130,000 customers for more than twelve years. In our new capacity at Progress, we will be able to leverage this experience in building a high-growth, successful organization and deliver amazing value to our combined customer base.
Leonard Nagel, SVP of Technology and Services at Suncoast Solutions, said: We are thrilled that Progress and Telerik are joining forces and hope other partners and customer dev teams see the same value and successes that weve seen using both companys industry leading tools. As a healthcare industry solutions provider, its life-critical that we provide seamless customer care across lines of business. Weve used the Progress OpenEdge product to build and manage the back-end of our SaaS-based (EHR) Electronic Health Record applications and are also using Teleriks Kendo product to bring our application experience to a whole new level for our customers. We look forward to continuing our path to innovation with the combined organization.
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About Progress Software Corporation
Progress Software Corporation (NASDAQ: PRGS) is a global software company that simplifies the development, deployment and management of business applications on-premise or in the cloud, on any platform or device, to any data source, with enhanced per
