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News in Brief
For the rest of the May 2000 issue of CRM magazine please click here
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Out of the Nest

After eight years under the Technology Solutions Company (TSC) umbrella, eLoyalty (www.eloyaltyco.com) has struck out on its own. In February, the management consulting and systems integration company spun off from TSC and is now an independently-managed, separately-traded company with 700 employees in North America, Europe and Australia. eLoyalty, which bills itself as "the world's first and only global business/management consulting and systems integration organization focused exclusively on building customer loyalty" is now traded on NASDAQ under the symbol ELOY.

"The board of directors decided to do the spin-off in order to unlock shareholder value and give us the ability to brand only in loyalty," says eLoyalty's Ellice Uffer. "Previously in our marketing efforts, we always had to tell the TSC story."

TSC shareholders received one share of eLoyalty for every TSC share they held at the time of the spin-off. "About 85 percent of the value of TSC stock was attributable to eLoyalty," says Uffer. In February, eLoyalty stock was trading at about $35 a share, while TSC stock was at about $7 a share. "According to research commissioned by the Conference Board, customer loyalty is the number one priority for CEOs in the year 2000," says Kelly Conway, president and CEO of eLoyalty. With 1999 revenues of $146 million, up from $105.2 million in 1998, and customers including Union Bank of California, Deutsche Telekom, Lucent Technologies and General Motors, eLoyalty wants a share of that pie.


Mergers and Acquisitions

Kana and Silknet announced that they will merge in a stock deal valued at $4.2 billion. Under the terms of the agreement, shareholders of Manchester, N.H.-based Silknet will receive 0.83 shares of Redwood City, Calif.-based Kana common stock. On a fully diluted basis, Kana will issue (or reserve) approximately 16.4 million shares of its common stock. The new company will have 600 employees in the United states, Europe and Australia and will offer a wide range of customer support solutions for Internet businesses.

Redi-Direct Marketing has acquired The Great Elk Company and merged it with WindSoft to form stayinFront. The new organization combines Great Elk's CRM technology with WindSoft's implementation and support infrastructure. WindSoft had been Great Elk's implementation partner in North America for several years. The new company is headquartered in Fairfield, N.J., and has offices in Chicago, Atlanta, Dallas, San Francisco, Portland, Maine, the United Kingdom and New Zealand.

People and Promotions
GoldMine President and CEO Vance Brown has resigned, opting to spend more time with his family and give more energy to the nonprofit organization he recently established, according to the company. GoldMine has also reorganized, creating a CRM Division led by newly appointed President Larry Twersky and an IRM Division led by President Edwin Gear. John W. Hillyard, vice president and chief financial officer since November 1999, will act as CEO until a permanent replacement for Brown can be found. The CRM Division will focus on front office solutions for sales, marketing and customer service. The Infrastructure Resource Management (IRM) Division will focus on solutions that allow companies to manage their assets from procurement to help desk support to retirement. Twersky was previously head of Corporate Computer Center, one of GoldMine's solutions providers, which GoldMine has announced it will acquire.

Worldtrak has named Donald J. Slusarski as chief executive officer. Company founder Clark Dircz will become chief technology officer and president. Previously, Slusarski was executive vice president of field operations for Lawson Software, a Minneapolis-based enterprise business software provider. He will be in charge of ensuring Worldtrak is prepared for its next growth phase.

Partnerships and Alliances
Epicor has announced a strategic relationship with Clarus, a B2B e-commerce solution provider, in which Epicor will integrate and offer the Clarus eProcurement solution to its midmarket customers. Clarus eProcurement is a B2B electronic procurement solution that directly connects buyers and suppliers of goods and services via the Internet.

DWL, a provider of transactional Web portals and eCRM systems, has signed a joint sales and marketing agreement with NCR, a provider of relationship technology solutions for the retail, financial, communications, travel, transportation and insurance markets. With this agreement, the two companies will offer insurers a comprehensive data warehousing and CRM solution.

Salesforce.com announced partnerships with Fortune Small Business Magazine, Inc.com, Bigstep.com, eBizServ.com and pcOrder.com to furnish salesforce.com to their customers as part of their business information and solution offerings.

CRM Update
SalesLogix is changing its name--to Interact Commerce Corporation. The new name is a milestone in the implementation of the multi-brand e-business strategy the company started late last year when it acquired ACT! and announced Interact. In other SalesLogix news, Mike Muhney, former Deloitte Consulting CRM practice leader and a co-founder of Contact Software International--the original creator of ACT!--has joined the company as executive vice president.

Siebel Systems chairman and CEO, Thomas Siebel, has agreed to donate $32 million to his alma mater, the University of Illinois, for the construction of new facilities for the department of computer science at the Urbana campus. The new 270,000-square-foot building, to be called the Thomas M. Siebel Center for Computer Science, will allow the department to increase the size of its faculty to 70 educators and the number of students they educate to 1,500 undergraduates and 500 graduate students.

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