Awards

2004 Frost & Sullivan Award for Competitive Strategy

Award Recipient - Click2Learn-Docent

In October of 2003, Click2Learn and Docent, two leading vendors in the LMS/LCMS space, signed an agreement to merge together their operations in the hopes of improving their market position in the e-Learning market. Frost & Sullivan expects this "merger of equals" to pay dividends for the newly formed company in the next few years. The newly formed company, which is to finish consolidating their operations and be named by the end of 1Q of 2004, is expected to offer a comprehensive set of solutions to the market comprising of LMS, LCMS, VC, and knowledge and performance management.

The newly formed entity is most likely to provide the skeptical e-Learning buyer market with a comprehensive set of solutions ranging from LMS to analytic tools and back it up with excellent professional and customer service. Click2Learn and Docent have an impressive customer base and the combined company is expected to serve more than 600 customers with 40 percent in the Fortune 50 and 35 percent of the Global 50 companies. The combined company will also have a strong distribution network and an impressive list of partners such as Accenture, CGEY, Deloitte, Exult, IBM, Microsoft, NEC, Primedia and Thomson Learning. Frost & Sullivan expects this move to result in increased revenues for the newly formed company owing to the synergies that will represent the strengths of both the parent companies.

The merger will also result in a new board of management that reflects the successful philosophies of both parent companies. Click2Learn and Docent, apart from other recognized infrastructure vendors like Saba, Pathlore, Plateau and THINQ, have a recognized brand name and as such hold substantial "mind share" in the customers perspective. This individual mind share is expected to increase as a result of the merger leading to increased revenue opportunities and market share in the future.

With combined R&D investments and positive cash flows, the combined company is expected to position itself as a strong competitor in the e-Learning infrastructure market. In the face of a market that is deeply fragmented, the strategic move by Click2Learn and Docent to shed their past of head-to-head competition, and embark on a future of hand-in-hand co-ordination, is expected to create an "alpha-leader" in the e-Learning market, a phenomenon hitherto unseen.

Based on the above reasons, Frost & Sullivan is pleased to award the combined entity of Click2Learn and Docent the Frost & Sullivan Award for Competitive Strategy for the year of 2004.

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