Indus International to Merge with MDSI Mobile Data Solutions

Indus International, Inc. (Nasdaq: IINT), a Service Delivery Management solution provider, announced today that it has entered into a merger agreement with Vista Equity Partners under which an affiliate of Vista will acquire Indus at US $3.85 per share in cash in a transaction valued at approximately US $240 million.

Upon completion of the acquisition, Vista will combine Indus with its portfolio company, MDSI Mobile Data Solutions Incorporated, a developer of enterprise mobile workforce management software.

Vista Equity Partners acquired MDSI for approximately US $70 million in September 2005. 

The board of directors of Indus has unanimously approved the merger and recommended its stockholders to vote in favor of it. Credit Suisse acted as financial advisor to Indus for the transaction.

“The combination of these two industry leaders is a game-changing event,” said Greg Dukat, President & CEO of Indus. “Together our products epitomize the Service Delivery Management philosophy, combining the functionality of best-of-breed enterprise asset management, field service management and customer management applications, to help service delivery organizations optimize interrelated business processes. Along with our emerging strength in the commercial client market, the combined company’s client base will include 5 of the top 10 cable companies and 18 of the top 20 utility companies in North America, as well as some of the world’s largest telecommunications companies. The combined footprint of Indus and MDSI will create the most attractive suite of products for the market.”

“[T]he combination of our two companies will bring together expertise and thought leadership that’s not found elsewhere in the industry. Together we will provide our clients with a broader solution suite to fully optimize their service delivery processes,” added Vince Burkett, President & CEO of MDSI.

“We are long-term investors in technology-enabled companies that are committed to leadership in their markets. We have been impressed with the product offerings, vision and market leadership found within Indus. We feel that a combination of Indus and MDSI will create a company that will be uniquely positioned to offer an end to-end solution for service delivery management. The proven management teams at both companies and unparalleled client base will be leveraged to provide clients with a single source for managing and optimizing their operations,” commented obert F. Smith, Managing Principal of Vista Equity Partners.

Integration plan of the two companies was not disclosed.

Richmond, BC based MDSI Mobile Data Solutions is a provider of enterprise mobile workforce management software. With approximately 275 employees, MDSI has operations and support offices in the United States, Canada, Europe and South Africa, servicing approximately 110 Clients.

Atlanta, Georgia based Indus International is a leading Service Delivery Management (SDM) solution provider. Indus solutions services more than 300 companies in more than 40 countries.

Institutional investors including Columbia Wanger Asset Management, LP, Tocqueville Asset Management, L.P., Paradigm Capital Management, Inc., and S Squared Technology, LLC are among significant shareholders of Indus International.