Siebel makes $975m move into financial market

CRM vendor Siebel Systems has purchased Canadian rival Janna Systems - which produces CRM software for investment banks and financial services firms - in a stock deal worth $975m.

Analysts welcomed Siebel's expansion into the financial market, but market reaction was not so strong. Siebel shares dropped 2.26 per cent on Nasdaq after the merger was announced yesterday. Janna System shares jumped slightly on the Toronto stock exchange following the announcement. Their key customers include Merrill Lynch and Lehman Brother Holdings. It is expected the merger will be finalised by summer 2001.