<PAGE> 1
Exhibit 99.1
FOR IMMEDIATE RELEASE
<TABLE>
<CAPTION>
INVESTOR CONTACT MEDIA CONTACT MEDIA CONTACT
---------------- ------------- -------------
<S> <C> <C>
Jeff Codispodi Jodi Echakowitz Jennifer Bowcock
Delano Technology Corporation Delano Technology Corporation Alexander Ogilvy Public Relations
T: 905-947-2946 T: 905-947-2167 T: 404-881-2379
E: [email protected] E: [email protected] E: [email protected]
</TABLE>
DELANO ACQUIRES DIGITAL ARCHAEOLOGY IN $87 MILLION DOLLAR DEAL
Delano Combines e-Business Interaction Platform and Collaborative Applications
with Digital Archaeology's Advanced Analytics Products to Bring to Market the
Industry's Most Comprehensive Solution for Driving Intelligent Interactions
TORONTO--OCTOBER 16, 2000--Delano Technology Corporation (NASDAQ: DTEC), a
leading provider of interaction-based e-business solutions for the enterprise,
today announced it has acquired Kansas-based Digital Archaeology Corporation, a
leading provider of advanced analytics for e-business, in a deal valued at US$87
million based on Delano's closing share price on October 13, 2000. The
acquisition enables Delano(TM) to bring to market a single solution that tightly
integrates Digital Archaeology's(R) analytical products with Delano's industry
leading e-business platform and electronic Customer Relationship Management
(eCRM) applications, providing enterprises with a one-stop-shopping opportunity
for intelligently managing interactions across the enterprise with customers,
partners, suppliers, and employees.
"This acquisition is a result of Delano's aggressive strategy to broaden our
product footprint and provide intelligence to the interactions our products
enable, placing us even further ahead of our competitors in the market for
customer and extended enterprise communications," said John Foresi, president
and CEO of Delano. "Essentially, what we will be able to accomplish through this
transaction is the seamless and very rapid integration of two robust technology
platforms--Delano's collaborative interaction platform and Digital Archaeology's
analytics platform--as well as the packaged operational and analytic
applications from both companies. The compatibility of the two underlying
technologies represent significant opportunities, not just for Delano and
Digital Archeology, but also for our customers who now have access to a single,
comprehensive solution that sets them apart from their competitors."
Under the terms of the acquisition agreement, Delano is issuing 4,630,462 shares
of its common stock and $17.4 million in cash, and is also assuming all of
Digital Archaeology's employee stock options at an exchange ratio of 0.53 Delano
shares for each Digital Archaeology share underlying such options resulting in
the issuance of 1,222,351 Delano options. All Delano shares issued (or to be
issued) in the acquisition were issued in a private transaction and are subject
to lock-up restrictions which are scheduled to be released in three installments
on March 1, 2001, the first anniversary of the closing and the 18-month
anniversary of the closing.
"As intelligent interactions and one-stop-shopping increasingly become a
prerequisite for competing effectively in the digital, customer-focused economy,
Digital Archaeology and Delano are joining forces to provide a uniquely
integrated solution that addresses all of a company's communications needs,"
said David Frankland, president and CEO of Digital Archaeology. "Through a fully
integrated eCRM, e-commerce and analytical solution built on a common e-business
platform, our customers will have an improved understanding of their customer
and trading partner needs through analysis of on-line and off-line behavior and
profiles. They will now also be able to build profitable relationships through
automated and effective cross-selling, up-selling and new customer acquisition
programs based on segmented customer data."
The combined company will have over 150 industry-leading enterprise customers,
including Agency.com, Charles Schwab, i2 Technologies, Nortel Networks, Ogilvy
Worldwide, Siemens, Macromedia, Beyond.com, Ericsson, GreyWorldwide, and Chase
Manhattan Bank. It will also have a team of almost 600 world-class employees
across the United States, Canada, Europe and Asia Pacific, including a research
and development organization that makes up approximately 40 percent of all
employees.
--more--
<PAGE> 2
DELANO ACQUIRES DIGITAL ARCHAEOLOGY IN $87 MILLION DOLLAR DEAL PAGE 2 OF 3
"The synergies between Delano and Digital Archaeology are significant. Both
companies' platforms focus on giving organizations a comprehensive view across
the enterprise of customer behavior by electronically connecting all facets of
an organization. The addition of analytical applications from Digital
Archaeology gives Delano the ability to make these interactions much more
intelligent and their customers that much more successful," said Robert Mirani,
Research Director, Customer Relationship Management, Yankee Group.
INTEGRATED SOLUTIONS THAT LEAD THE WAY TO SUCCESS
In addition to a naturally fitting corporate culture and similar financial
models that derive more than 80 percent of all revenue from the sale of products
and less than 20 percent from the services provided to deploy its products, both
Delano and Digital Archaeology products are founded on the same guiding
principles. Each company has made substantial upfront investments to build
solutions based on a strong technological platform to provide enterprise
customers with very flexible, highly customizable and extensible solutions to
manage and build profitable relationships across the entire enterprise. These
shared development philosophies and inherent technology synergies ensure that
tightly integrated products can be delivered faster and easier than any other
solutions on the market today.
Since its entry into the e-business market, Delano has successfully delivered
the Delano Solution, which includes the Delano e-Business Interaction Suite(TM),
a robust e-business platform for rapidly developing and deploying
enterprise-wide e-business applications to manage interactions with a company's
customers, partners, suppliers, and employees; and Delano Customer Velocity(TM),
which is built on the Delano platform and is the industry's first fully
integrated suite of e-marketing and e-service applications.
Digital Archaeology's Discovery Suite is a flexible platform for rapidly
deploying easily customizable and extensible analytic solutions. Customer
Discovery(TM), Digital Archaeology's advanced customer analytic packaged
application, provides organizations with in-depth analysis of online shopping
and purchasing behavior, enabling users to maximize the opportunity of online
customer interactions and measure the effectiveness of Internet-based marketing
strategies.
While there are many examples of the numerous and varied synergistic benefits to
Delano customers as a result of the acquisition of Digital Archaeology, consider
an organization that deploys Delano's leading one-to-one e-marketing campaign
management application to electronically inform its customers of a new product
that is being launched. The integration of Digital Archaeology's analytic
products will enhance the campaign management application by providing upfront
customer segmentation analysis to intelligently focus on only those prospects
who are most likely to be early adopters of new products.
Through sophisticated algorithms, Digital Archaeology's products can analyze
historical information on the frequency, timing and method of new product
purchases across an entire customer database. This analysis will indicate who
the most likely early adopters will be for the new product, so that the
organization can focus its marketing efforts on prospects against which they are
more likely to realize success, as well as the timing, the content, and the
communication channels (i.e. e-mail, wireless, direct marketing, etc.) to which
each of these prospects is most likely to respond. This sophisticated
segmentation married with Delano's campaign management product results in more
intelligent, focused interactions with prospective buyers of the new product,
and ultimately to higher response rates and more successful marketing campaigns.
RAPID INTEGRATION OF PRODUCTS
While Delano and Digital Archaeology products can interoperate today, a fully
integrated solution will be released in multiple phases. The first stage will be
completed by December 2000 and will result in the integration of both technology
platforms, as well as Customer Discovery and Customer Velocity applications to
enable the intelligent management of customer interactions for marketing and
service.
--more--
<PAGE> 3
DELANO ACQUIRES DIGITAL ARCHAEOLOGY IN $87 MILLION DOLLAR DEAL PAGE 3 OF 3
ABOUT DELANO TECHNOLOGY CORPORATION
Delano Technology Corporation is a leading provider of interaction-based
e-business solutions that enable an enterprise to interact with its customers,
partners, suppliers, and employees, for fast measurable results. At the core of
Delano's solution is a robust e-business platform and fully integrated eCRM
application suite. Delano is headquartered in Toronto, Canada, with offices
across North America and Europe. For additional information, contact Delano
Technology Corporation, 302 Town Centre Boulevard, Markham, ON, L3R 0E8;
www.delanotech.com.
INVESTOR NOTE: A teleconference to address the details of the acquisition is
scheduled for Monday, October 16 at 8:30am EST / 7:30am CST. Domestic dial-in:
1-888-569-5033 and International: 719-457-2653. Ask for the Delano conference
call.
ABOUT DIGITAL ARCHAEOLOGY CORPORATION
Digital Archaeology Corporation is a leading provider of advanced analytics for
e-business, giving e-businesses fast, flexible and smart solutions for market
leadership on the Web. The company's solutions provide enterprises with a
comprehensive view of customer and trading partner behavior and preferences
across traditional and e-commerce channels. This enhanced enterprise-wide
visibility provides access to more information with which to create and measure
business strategies for increased profitability and improved customer and
partner loyalty. Built with Digital Archaeology's Discovery Suite, its
Web-deployed customer analytic application Customer Discovery, can be installed,
customized and implemented quickly--in hours or days. Digital Archaeology is a
privately held company based in Kansas City. For more information, please visit
www.digarch.com.
--###--
Delano, Customer Velocity, and the e-Business Interaction Suite are trademarks
of Delano Technology International SRL. Digital Archaeology is a registered
trademark and Digital Archaeology Discovery Suite and Customer Discovery are
trademarks of Digital Archaeology Corporation. All other company and product
names mentioned are the trademarks or registered trademarks of their respective
companies.
Forward-looking statements in this press release, including statements relating
to the anticipated benefits from Delano Technology Corporation's acquisition of
Digital Archaeology Corporation, are made pursuant to the "safe harbor"
provisions of the United States Private Securities Litigation Reform Act of
1995. Investors are cautioned that such forward-looking statements involve risks
and uncertainties, including, without limitation, risks relating to rapid
technological change and increased levels of competition within our industry,
our ability to manage growth, continued acceptance of our products, intellectual
property rights and other risks detailed from time to time in our filings with
the United States Securities and Exchange Commission.
