Niku Corporation Acquires Proamics Corporation to Deliver Comprehensive Services Supply Chain Solution

Niku Corporation, a leading provider of software that enables businesses to source, manage, and deliver professional services using the Internet, has announced its acquisition of Proamics Corporation, a leading provider of back-office solutions for professional services firms. The acquisition, valued at over $40 million, will enable Niku to deliver a comprehensive services supply chain solution, integrating robust back-office functionality with Internet-based front-office capabilities.

The combined company will have over 200 customers and 325 employees in offices worldwide, serving a broad range of professional services industries, including consulting, law, advertising, marketing, financial services, and more. The acquisition is expected to close by the end of the year.

With the addition of Proamics' time and expense, project accounting, and billing solutions, the Niku Internet framework will provide the first integrated, end-to-end solution for professional services organizations, combining intellectual capital management, resource management, project management, and business development.

Key Takeaways:

• Niku Corporation acquires Proamics Corporation, a leading provider of back-office solutions for professional services firms, in an equity deal valued over $40 million.
• The combined company will have over 200 customers and 325 employees in offices worldwide.
• The acquisition will enable Niku to deliver a comprehensive services supply chain solution, integrating robust back-office functionality with Internet-based front-office capabilities.
• Proamics' solutions will be incorporated into Niku's entire product line, including both Internet-based enterprise software and the iNiku.com Internet business center.
• The combined company will serve a broad range of professional services industries, including consulting, law, advertising, marketing, financial services, and more.
• Niku plans to leverage the Internet to connect all organizations and individuals in the services supply chain, including clients, subcontractors, and even a client's subcontractors and customers.
• The Niku-integrated Proamics solution will provide the first integrated, end-to-end solution for professional services organizations, combining intellectual capital management, resource management, project management, and business development.
• The acquisition is expected to close by the end of the year.
• The services supply chain market is expected to grow to almost $12.0 billion by 2003, with a five-year compounded annual growth rate approaching 100%, according to International Data Corporation.

Statistics:

• 200 customers will benefit from the combined company's offerings.
• 325 employees will contribute to the development and delivery of the comprehensive services supply chain solution.
• The services supply chain market is expected to grow to almost $12.0 billion by 2003, representing a compound annual growth rate of 100%.
• 100% growth is expected in the services supply chain market by 2003, according to International Data Corporation.

Sources:

• Niku Corporation press release, dated November 22, 1999.
• International Data Corporation, "Services Supply Chain Automation Applications," 1999.
• Proamics Corporation, "About Proamics," 1999.
• Niku Corporation, "About Niku," 1999.