Teknowledge Sells TekPortal(R) Technology to Intuit Inc., and Retains Financial Integration Services Business
August 22 2005 - 5:43PM
PR Newswire (US)
PALO ALTO, Calif., Aug. 22 /PRNewswire-FirstCall/ -- Teknowledge
Corporation (NASDAQ:TEKCC), announced today that it concluded an
asset transaction to sell its TekPortal(R) technology, an asset
from its Financial Solutions business unit, to Intuit Inc.
(NASDAQ:INTU) for 7 million dollars. As part of the technology
sale, Intuit was granted a license to each of Teknowledge's six
active patents, and acquired Teknowledge's pending patent on OFX
technology. Teknowledge will retain ownership of all of its current
patents. Neil Jacobstein, Teknowledge President and CEO said: "This
deal is a win for both companies. Intuit acquires technology that
is strategic to its business, and Teknowledge delivers on its
objective to raise capital via the sale of an asset or product
line. This permits Teknowledge to focus on its core competencies of
developing knowledge based software technology, and delivering
integration services for financial and government customers."
Jacobstein continued: "This sale demonstrates that Teknowledge can
produce high quality application specific software technology. A
key feature of our business model going forward will be to license
our other innovative software technologies to companies with
substantial marketing resources and a large customer base. We see
this as an exciting opportunity to build on our strengths."
Teknowledge will continue to provide financial software integration
services for TekPortal software in its Financial Solutions business
unit. The TekPortal development team will transfer to Intuit Inc.,
but other members of the Financial Solutions services and
integration team, including its outside service contractors, will
be retained by Teknowledge. The Company will support its current
TekPortal maintenance contracts for a period of up to 2 years, with
the expectation that many of these customers may choose to
transition over time to Intuit. Teknowledge will continue to
deliver services and support for its custom business banking
software maintenance contracts. Teknowledge also plans to grow its
innovative government R&D contracts business, which could
generate additional licensable technology, particularly in software
security, machine learning systems, and web-based application
services. The asset sale will permit Teknowledge to expand its
patents and technology-licensing activities, which are based on
technology developed in its government and commercial services
businesses. About Teknowledge Corporation Teknowledge delivers
innovative software and services to transform data into value. It
provides integration services for financial institutions, and is a
contractor for government R&D in network security, Web-based
training, distributed systems, and knowledge processing. Founded in
1981, Teknowledge holds an extensive intellectual property
portfolio, including six active software patents. Forward looking
statement: Except for the historical information, the matters
discussed in this news release may contain forward-looking
statements, including, but not limited to, factors relating to
future sale and income growth. These forward-looking statements may
involve a number of risks and uncertainties. Actual results may
vary significantly based on a number of factors, including, but not
limited to, uncertainties in product demand, the impact of
competitive products and pricing, changing economic conditions
around the world, release and sales of new products and other risk
factors detailed in the Company's most recent annual report on Form
10-KSB and its other filings with the Securities and Exchange
Commission. DATASOURCE: Teknowledge Corporation CONTACT: Dennis
Bugbee Vice President of Finance and CFO of Teknowledge
Corporation, +1-650-424-0500, or Web site:
http://www.teknowledge.com/
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