Selectica Closes Acquisition of Iasta and $7.5 Million Equity Financing

Selectica Closes Acquisition of Iasta and $7.5 Million Equity Financing 
New Capabilities and Expanded Global Operations to Help Enterprises
Create, Manage, and Optimize Business Relationships With Contracts at
the Core 
SAN MATEO, CA -- (Marketwired) -- 07/02/14 --  Selectica, Inc.
(NASDAQ: SLTC) 
News Summary 
Selectica, Inc. (NASDAQ: SLTC) today announced it has completed the
acquisition of Iasta, an industry leading SaaS-based sourcing and
spend management solutions company focused on providing strategic
sourcing, business intelligence, spend analysis, supplier management,
and contract management technology. Iasta empowers procurement and
sourcing professionals in mid- to large enterprises worldwide.  
As part of enabling the acquisition, Selectica also announced today
that it has completed a private placement transaction with certain
institutional funds and accredited investors for approximately $7.5
million. 
News Facts 


 
--  Selectica announced on June 5, 2014 its agreement to acquire Iasta and
    announced on June 6, 2014 its agreement to issue securities in a
    private placement. Terms of both deals were completed on July 2,
    2014.
    
    
--  Iasta serves more than 120 enterprise customers including AOL,
    Bombardier, Brunswick, Cushman & Wakefield, Ciena, Foot Locker,
    OfficeMax, Glanbia, Endo Pharmaceuticals, Equifax, Westinghouse, VF
    Corp, FirstGroup, and Centrica.
    
    
--  Phase one of integration plans have been completed including:
    Selectica and Iasta product and technology team collaboration with a
    focus on analytics; proactive customer communications and engagements;
    and sales and marketing strategy development. More details will be
    communicated over the next four quarters.
    
    
--  Selectica will continue to maintain both www.iasta.com and
    www.selectica.com for the foreseeable future, to leverage and optimize
    upsell and cross-sell opportunities where appropriate, as teams
    execute on integration plans with the goal of improving capabilities
    and efficiencies.
    
    
--  Olshan Frome Wolosky, LLP represented Selectica in negotiating a
    definitive merger agreement.
    
    
--  Lake Street Capital Markets, LLC served as the financial advisor for
    the transaction.
    
    
--  More information about the acquisition can be found at:
    http://www.selectica.com/company/selectica-acquires-iasta

  
Supporting Quotes 
"We are pleased with how customers, employees, and the market have
responded to the news of the acquisition," said Blaine Mathieu, CEO
and President of Selectica. "Selectica and Iasta teams have made
significant progress with phase one of our integration plans
including technology reviews and product roadmap planning, customer
communications and response, and sales readiness across our expanded
global operations." 
"Our strategies and teams are aligned, and our products are already
one of the most powerful combinations available for procurement
organizations," said David Bush, CEO and founder of Iasta. "We are
focused on and motivated to make our solution the undisputed, market
leading solution for B2B relationship management while also meeting
the demands of our customers."  
Supporting Resources 


 
--  About Selectica and Iasta
--  Blaine Mathieu blog
--  David Bush blog
--  Selectica on LinkedIn
--  Selectica on Twitter
--  Selectica on Facebook
--  Iasta on Twitter
--  FAQs

  
Inducement Grants 
Selectica also announced today that, in connection with the
acquisition, Selectica's board of directors approved the grant of
options to purchase an aggregate of 700,000 shares of Selectica
common stock to 59 Iasta employees to attract and retain their
services following the acquisition, including options to purchase
150,000 shares to each of David Bush, Jason Treida and Todd Epple.
The non-qualified options each have an exercise price per share equal
to the closing price of Selectica's common stock on NASDAQ on July 2,
2014. The options each have a 10-year term and vest over a 48-month
period, with 25 percent of the option shares vesting after completion
of 12 months of continuous service to Selectica, and the remaining
option shares vesting in equal monthly installments over the
following 36 months of continuous service to Selectica. The grants
were made as inducements that were a material component of the
compensation of the Iasta employees and subsequent acceptance of
employment with Selectica, and the options were granted as employment
inducement awards pursuant to NASDAQ Listing Rule 5635(c)(4) approved
by the majority of Selectica's independent directors. 
Securities Not Registered 
The securities described herein have not been registered under the
Securities Act of 1933, as amended, or any state securities laws, and
may not be offered or sold in the United States absent registration
with the Securities and Exchange Commission or an applicable
exemption from such registration requirements. Selectica has agreed
to file one or more registration statements with the Securities and
Exchange Commission covering the resale of the shares of common stock
issued in the Iasta acquisition, the common stock issuable upon
conversion of or in connection with the preferred stock issued in the
private placement and upon exercise of the inducement grants issued
in connection with the Iasta acquisition and the warrants issued in
the private placement. 
No Offer or Solicitation 
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities described herein, nor
shall there be any sale of such securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to the
registration or qualification under the securities laws of any such
jurisdiction. 
About Selectica, Inc. 
Selectica, Inc. (NASDAQ: SLTC) provides a platform for enterprises
worldwide to create, manage, and optimize business relationships with
contracts at the core. Since 1996, Selectica helps global companies
actively manage their contracts throughout the sales, procurement and
legal life cycle. Selectica's contract management solutions drive
business value by assisting organizations in managing contracts
profitably, effectively accelerating revenue opportunities, and
minimizing risk through compliance. Our patented technology enables
customers across a myriad of industries including high-tech,
telecommunications, manufacturing, healthcare, and financial services
to accelerate and streamline both contract management and sales
processes. Selectica also provides a powerful configuration engine,
enabling Fortune 500 companies to accelerate revenue by facilitating
the optimization of the right combination of products, services, and
price. More information: www.selectica.com 
Forward-looking Statements 
Certain statements in this release and elsewhere by Selectica are
forward-looking statements within the meaning of the federal
securities laws and the Private Securities Litigation Reform Act of
1995. Such statements may include, without limitation, statements
regarding anticipated synergies relating to the acquisition, business
outlook, assessment of market conditions, anticipated financial and
operating results, strategies, product and channel development,
future plans, contingencies and contemplated transactions of the
company. Such forward-looking statements are not guarantees of future
performance and are subject to known and unknown risks, uncertainties
and other factors which may cause or contribute to actual results of
company operations, or the performance or achievements of the company
or industry results, to differ materially from those expressed, or
implied by the forward-looking statements. In addition to any such
risks, uncertainties and other factors discussed elsewhere herein,
risks, uncertainties and other factors that could cause or contribute
to actual results differing materially from those expressed or
implied for the forward-looking statements include, but are not
limited to, challenges in integrating the business of Iasta after
closing, fluctuations in demand for company products and services,
risks of losing key personnel or customers, protection of the
company's intellectual property and government policies and
regulations, including, but not limited to those affecting the
company's industry. Selectica undertakes no obligation to publicly
update any forward-looking statements, whether as a result of new
information, future events or otherwise. Additional risk factors
concerning the company can be found in the company's most recent Form
10-K as filed by the company with the Securities and Exchange
Commission.   
Contacts 
Investor Relations:
Budd Zuckerman
bzuckerman@genesisselect.com
+1-303-415-0200  
Media Relations:
Selectica, Inc.
Erick Mott
emott@selectica.com 
+1-650-532-1551 
@erickmott 
 
 
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