LONDON, ENGLAND, — April 21, 2008 — Keynote Systems (Nasdaq: KEYN), the global leader in on-demand mobile and Internet test & measurement solutions for continuously improving the online experience, today announced the acquisition of Zandan, a private, French-based software company.
In the transaction, Keynote 1) secured the exclusive rights to the technology used to develop Keynote Mobile Application Perspective® (MAP), which was originally licensed from Zandan in a non-exclusive OEM deal approximately three years ago; 2) gained access to the company’s small, but important customer base including Telefonica and Bouygues, the large Spanish and French wireless carriers; and 3) cemented Keynote’s position as the worldwide leader in mobile test & measurement software-as-a service (SaaS) solutions. The total purchase price is expected to be €2 Million, or approximately US$3 million, and includes the share purchase price, debt repayment and estimated restructuring costs, which are likely to be incurred over the next six months. The transaction is expected to be accretive on a non-GAAP basis in Keynote’s fiscal year 2009, which begins October 1, 2008. The company defines non-GAAP net income as net income adjusted for provision for income tax, stock-based compensation expense, and amortization of purchased intangibles less cash tax expense.
Zandan is a 14-person French-based software company, whose founder and former chief technology officer, Jerome Jacq, joined Keynote in 2007. Zandan supplies active end-to-end customer simulation solutions used across the entire mobile service life cycle from interactive testing, service & handset acceptance to live monitoring, alerting, troubleshooting and SLA management. Keynote MAP allows wireless operators and mobile content developers to interactively test, measure and monitor mobile content from 22 geographic locations worldwide utilising a library of over 1,000 wireless device profiles.
Umang Gupta, chairman and CEO of Keynote, said “Our MAP service was implemented by us on the basis of Zandan code, and it has already found traction in the U.S. with many mobile customers. We now hope to repeat the same success in Europe with the help of the Zandan team. Our intent is to restructure the Zandan business in an orderly way over the coming six months and to rename it Keynote France. Thereafter , the company, which will be headed by Jerome Jacq, will have the mission of increasing our mobile and Internet business in France, Spain and adjoining countries.”
About Keynote
Keynote Systems (Nasdaq “KEYN”) is the global leader in on-demand test & measurement solutions for continuously improving the online experience. As an independent and trusted third-party, Keynote provides IT and marketing executives with an unbiased view into their Internet services from around the world. For over a decade, Keynote has been providing measurement data and testing capabilities that allow companies to understand and improve their customer’s online and mobile experience. Keynote has four test and measurement businesses: Web performance, mobile quality, streaming & VoIP, and customer experience/UX. In addition, Keynote’s industry analysis group called Keynote Competitive Research publishes proprietary studies measuring customer experience and service levels across a wide range of industries.
Known as The Mobile and Internet Performance Authority™, Keynote has a market-leading infrastructure of 2,400 measurement computers and mobile devices in over 240 locations around the world. Keynote also maintains one of the most representative panels of online users consisting of 160,000 consumers. Keynote’s on-demand, hassle-free infrastructure allows businesses to access services they need, when they need them to pinpoint and fix mobile quality and Internet problems before they impact customers.
Keynote helps over 2,600 corporate customers become “the best of the best” by helping them improve online business performance and mobile communications quality. Keynote’s customers represent top Internet and mobile companies including American Express, BP, Caterpillar, Dell, Disney, eBay, ESPN Mobile, E*TRADE, Expedia, FedEx, Microsoft, SonyEricsson, Sprint, T-Mobile, Verizon and Vodafone.
Keynote Systems, Inc. is headquartered in San Mateo, California and can be reached at www.keynote.com or by phone in the U.S. at (650) 403-2400.
Keynote, The Internet Performance Authority, Perspective and Customer Experience Rankings are registered trademarks and The Mobile and Internet Performance Authority and True Experience are trademarks of Keynote Systems, Inc. Other trademarks are the property of their respective owners. © 2007 Keynote Systems, Inc.
Editorial Contacts:
Ryan Whelan & Andy Chatterton, Johnson King, +44 (0) 20 7401 7968, keynoteteam@johnsonking.co.uk