Pegasystems buys CRM vendor Chordiant

Pegasystems said Monday it would buy Chordiant for roughly US$161.5 million, adding CRM (customer relationship management) and analytics capabilities to its BPM (business process management) stable of applications. The deal is expected to close in the second quarter.

Pegasystems' strength lies in automating business processes, while Chordiant's focus is on "the customer conversation," said Alan Trefler, CEO of Pegasystems, during a conference call. "How do you make sure the right thing is said to the customer? How do you make sure that the best product is offered to the customer? We envision having something that will look to prospective buyers like a well-integrated set of concepts."

The deal makes sense, as Chordiant has sold "process-focused" CRM products, said Altimeter Group analyst Ray Wang. Both companies also have a heavy focus on verticals such as health care and insurance.

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