Contact: Scott Denne
PROS Holdings is paying $36m for configure, price and quote (CPQ) sales automation vendor Cameleon Software, adding fuel to an already steady growth rate. The deal, PROS’s first in its 28-year history, should boost the company’s top line by providing new cross-selling opportunities and expanding its presence in Europe.
Using an enterprise value of $33m, Cameleon is being valued at 2.2x trailing sales, a bargain compared with the 7.3x valuation PROS is currently sporting. Cameleon’s shares are being valued 45% higher than their 90-day average trading price.
PROS, which makes software that helps determine the optimal price to charge each customer for a given product, grew revenue 22% last year, to $118m. That follows a record-setting 36% growth rate in 2011. Cameleon is much smaller, but still saw sales rise 29% last year to $14m.
The purchase of Cameleon brings PROS technology that helps customers/vendors automate the process of getting the right products and right information to prospective clients. (It is similar to what Oracle obtains with its recent purchase of BigMachines .) Cameleon, based in France, also brings PROS a larger European operation. Though PROS is growing overall, its European revenue shrank slightly in its most recent quarter.
For more real-time information on tech M&A, follow us on Twitter @451TechMnA.