Siebel Systems To Buy Edocs

Additional payments based on achieving revenue and other contractual milestones may be paid in 2006.

Natick, Mass.-based Edocs provides e-billing and customer self-service software solutions.

Siebel said that excluding the impact of a one-time merger-related charge of an estimated $8 million to $10 million, the transaction will reduce first-quarter earnings by about 1 cent a share. Siebel expects the transaction to be approximately neutral to earnings for the remainder of 2005.

Analysts surveyed by Thomson First Call expect Siebel to earn 6 cents a share in the first quarter, and 27 cents a share in 2005.

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The boards of both companies have approved the acquisition, which is expected to close early in the first quarter.

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