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SumTotal To Acquire Pathlore

SumTotal Systems Inc. (Nasdaq:SUMT) and Pathlore Software, two leading enterprise software companies in the learning and business performance management market, today announced the signing of a definitive agreement for SumTotal to acquire Pathlore for approximately $47 million. Pathlore shareholders will receive approximately $29 million in cash and 4 million shares of SumTotal Systems common stock. The merger reinforces the company’s position as the largest software provider in the emerging learning and performance management market and is expected to provide its collective customers even greater resources for support and product innovation.

According to industry analysts, the acquisition brings together the market share leader by revenue and the market share leader by customer count. The combination is expected to offer Pathlore customers access to SumTotal’s broader enterprise suite of product capabilities and expanded global support as well as extend SumTotal’s reach into key segments, including state government, health care, and the rapidly growing middle-market.

SumTotal Systems Inc. (NASDAQ: SUMT) is the largest provider of learning and business performance technologies, processes and services. Formed by the merger of industry pioneers Docent and Click2learn, the company is uniquely focused on helping organizations harness and manage mission-critical intellectual power to solve real-world business problems and produce significant bottom-line results. SumTotal has helped accelerate performance and profit for more than 675 of the world’s best-known companies and federal and local government agencies, including Microsoft, United Airlines, U.S. Army, Air Force, Navy and Coast Guard, Vodafone, Aetna, Accenture, Cendant, Harley-Davidson, Wyeth, Wachovia and D & B. SumTotal Systems is headquartered in Mountain View, Calif., with offices throughout the United States, as well as in London, Paris, Heidelberg, Sydney, Tokyo and Hyderabad, India.
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