Phoenix Technologies, (Nasdaq: PTEC), the global leader in core systems software, today announced that it has signed a definitive agreement to acquire TouchStone Software Corporation (TSSW.OB), a global leader in computer diagnostics and PC update technology. Under the terms of the agreement, Touchstone shareholders will receive $1.48 in cash for each share of Touchstone common stock. By acquiring TouchStone, Phoenix is positioned to deliver the most complete offering for the deployment and management of PC-related products and services in the PC industry.
As part of its ongoing PC 3.0 strategy, Phoenix Technologies’ acquisition of Touchstone will enable Phoenix to develop a strong online presence and infrastructure for web-based service delivery. Phoenix will offer services based on TouchStone technology to PC OEMs/ODMs, SMBs and consumers, as well as incorporate the technology into its own products.
“Following close on the heels of our BeInSync announcement, this acquisition is yet another giant leap forward in our effort to simplify all aspects of the PC user experience,” said Woody Hobbs, President and CEO of Phoenix Technologies. “Our PC 3.0 vision is all about simplifying PC users’ lives. With the acquisition of TouchStone, we are taking PC management technology to the “one-click” level as well as strengthening our ability to support online delivery models. We are also broadening our opportunities for new market share gains and new sources of revenue via the web.
“As the PC becomes more entrenched in everyday life, users need simple and immediate access to web-based automated support services including software updates and the analysis and optimization of device performance and security. PC OEMs are facing increasing costs in order to adequately support their users at a time when PC prices and margins are declining. We want to turn the OEM’s costs into profits while simultaneously delivering better service to the consumer and business user. TouchStone provides us with the tools and platform to build ‘anytime anywhere’ capabilities into a wide array of applications that will enable our OEM customers to facilitate a simple and rewarding online experience for their end users -- and generate a steady revenue stream for themselves.”
Jason Raza, President and CEO at TouchStone Software, said, “The TouchStone team has always believed in improving and automating customer support and software update delivery. As part of a customer-focused company like Phoenix Technologies, we will now have the resources to not only unlock that potential, but to leverage its OEM and ODM customer base to create truly innovative real-world uses for our products and services online. We’re very excited about our future prospects.”
The acquisition, which is expected to close in Q2 of calendar year 2008, is subject to customary closing conditions, including approval by the stockholders of Touchstone.