ClickSoftware to Acquire Xora for Approx. $14.7M

ClickSoftware Technologies Ltd. said it has agreed to acquire cloud-based Xora, Inc. for approximately $14.7 million in cash to enhance its cloud business.

The deal will extend ClickSoftware's reach into the small and medium-sized business (SMB) market, while enabiling it to open a distribution channel through wireless carriers, including Verizon, AT&T and Sprint, the company said. And ClickSoftware will add Xora 130,000 users to its existing 500,000-plus user base, the company said.

ClickSoftware founder and CEO Moshe BenBassat said in a statement that the acquisition is a "strategic addition to our mobile workforce management business and accelerates our cloud recurring revenues."

During an earnings call this month, BenBassat told analysts that ClickSoftware saw an "impressive" 166 percent year-over-year growth in cloud customers.

"The velocity with which we are acquiring new cloud customers is one more indicator for our leadership position in cloud offering for our space as we are distancing ourselves and moving further ahead of the competition," he said.

BenBassat did note, however, that the company's shift to cloud did impact upfront license revenues in 2013, but ClickSoftware saw a "significant increase in our base of recurring cloud revenues and expect greater visibility in 2014 as the stream continues to substantiate and grow."

As with many deals, the closing is subject to closing conditions and purchase price adjustments. The deal is expect to close in the coming weeks.

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