ACADEMIA

Pervasive Software today announced completion of the purchase of assets from Greenville, SC-based ChanneLinx, Inc. The transaction was completed on July 31, 2009 for total consideration of approximately $2.6 million in cash.

“I’m proud to welcome the team of ChanneLinx software professionals to the Pervasive family, and we are committed to the continued excellent customer service and technical expertise that they provide their customers,” said John Farr, president and CEO, Pervasive Software. “The ChanneLinx team, which will now operate as Pervasive Business Xchange, is expected to stay intact within Pervasive so they can remain focused on meeting customer needs and providing users with superior technology and service.”

“With our loyal customer base, deep data interchange technology and expertise, and strengths in the oil and gas and construction verticals, the ChanneLinx team brings powerful complementary technology and market strengths to Pervasive,” said Steve Pridemore, senior director, Pervasive Business Xchange. “We’re excited to leverage and extend our ten years of in-depth data interchange technology leadership with Pervasive’s technical, sales and marketing resources, well-developed channels and large customer base.”

“As a long-time ChanneLinx customer, we're excited to see them join forces with a strong, well-established software leader like Pervasive,” said Dave Gonze, Senior Vice President of Finance & Technology at Lumbermens Merchandising Corporation, a buying cooperative founded in 1935 that today has more than 350 stockholder companies and transacts over 1.2 million invoices a year. “We value ChanneLinx' high standards of service, easy-to-use product and commitment to meet our specific needs. We look forward to continuing our strong relationship with the Pervasive Business Xchange team as we grow our stockholder base.”

“I am very excited about the synergies between ChanneLinx and the other product teams within Pervasive,” Farr said. “We see complementary opportunities in every sector of our business:

• Pervasive Data Integrator provides industry-leading last-mile integration that can help ChanneLinx hub and trading partner customers rapidly and affordably connect an enormous range of endpoint data sources and applications to the WebDI data interchange.
• Pervasive DataSolutions offers immediate, affordable, Web-based integration for ChanneLinx customers who use QuickBooks and Salesforce CRM or Microsoft Dynamics CRM.
• ChanneLinx has a strong, stable customer base including blue-chip companies like Lumbermens Merchandising Corporation and L&W Supply. Pervasive DataRush can bring breakthrough high-performance analytics and data-crunching capabilities to their massive datasets.
• And, we’re excited about the opportunity to introduce ChanneLinx’ low-cost, Web-based business exchange automation between trading partners to existing Pervasive customers, including Pervasive PSQL ISV partners, as well as to new prospects.”

Pervasive management reiterated the business outlook provided in its July 21, 2009 press release reporting financial results for its fiscal fourth quarter and fiscal year ended June 30, 2009. Management will provide further information regarding the future plans and prospects of the combined company when it provides fiscal 2010 first quarter financial results for the quarter ending September 30, 2009.