Software Technologies Corporation (STC) Prepares to go Public

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Event Summary

"MONROVIA, Calif.--(BUSINESS WIRE)--Feb. 18, 2000--Software Technologies Corp. (STC) announced the filing by the company of a Registration Statement with the Securities and Exchanges Commission relating to the proposed initial public offering of up to $100 million of its common stock.

STC will use the net proceeds from the proposed offering for general corporate purposes and to repay $10 million under a long-term note. All shares are being sold by the company.

STC, located in Monrovia, is a leading provider of e-Business integration software that enables the seamless flow of information within and among enterprises on a global basis. STC's comprehensive e*Gate software suite provides companies with a flexible and easily configurable platform to connect applications and systems within and among enterprises.

The STC solution provides customers with the flexibility to implement and adapt their business strategies in response to market dynamics and pursue new business initiatives to enhance revenue, profit, and customer service.

Morgan Stanley Dean Witter will act as the lead underwriter of this offering and Merrill Lynch & Co. and Donaldson, Lufkin and Jenrette will act as co-managers."

Market Impact

Most of the major Enterprise Application Integration vendors are currently privately held. This development should allow STC some maneuvering room against the competition, and allow them to fund development efforts on their eGate EAI suite.

This follows news of a success for STC on an implementation at Petsmart Inc. (a Phoenix-based pet supply chain), where the eGate product was used to integrate SAP R/3 with Point-Of-Sale systems from NCR Corporation. In order to complete the integration, Petsmart tied SAP and the NCR system into an Oracle 8 database and used eGate to marry the application programming interfaces together. The time required to process store transactions into the ERP system was reduced from 12 hours to 2 hours. According to Petsmart officials, between reduced system maintenance costs and the lower cost of processing transactions, Petsmart will save $3.5 million dollars over five years.

User Recommendations

Customers evaluating enterprise application integration systems should include STC on a long list of possible EAI vendors.

Any vendor considered should be strongly questioned on the experience of their consulting staff, as EAI applications always require custom programming to marry the disparate applications together. Using consultants already familiar with the integration software can greatly reduce the time required to implement the solution.

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