CDC Software Wins the Pivotal Auction. Now What?
Part Two: Market Impact
P.J. Jakovljevic - February 7, 2004

Market Impact

On December 8, Pivotal Corporation (NASDAQ: PVTL; TSX: PVT), a Vancouver, British Columbia, Canada-based mid-market CRM provider, announced that it proposed a strategic combination with CDC Software. CDC Software is a wholly owned subsidiary of chinadotcom (NASDAQ: CHINA), a global enterprise software and mobile applications provider. This will position Pivotal to re-establish a more esteemed position in the mid-enterprise CRM market. Subject to the approval of Pivotal's shareholders, the Supreme Court of British Columbia, and customary closing conditions, this transaction is expected to close before the end of February 2004. Following the closing of the transaction, Pivotal also announced that it expects to accelerate investments in its growth including increasing technical support its research and development headcount by up to 40 percent, resuming the expansion of its research and development headcount, resuming its acquisition program, expanding distribution capabilities in Asia through CDC Software, and increasing marketing spending by up to 200 percent...