Two Major Predictive Dialer Players Announce Merger

Concerto Software Inc., which makes systems that handle incoming and outgoing phone calls, announced last night that it was merging with privately-held Melita International Ltd. in a deal worth about $145.2 million.

The companies said Concerto shareholders will receive $12 a share in cash, a 28 percent premium over the stock’s closing price of $9.35 yesterday.

The combined company, which will keep the Concerto name, will be privately held. The deal still requires shareholder and regulatory approval, but is expected to be complete by early next year.

Concerto president and CEO James Foy will retain those titles once the merger is complete.

Customers of Concerto, which employs more than 400 people, are primarily telemarketing companies and collection agencies. Its products route calls to agents, automatically send customer information to agent workstations, monitor workflow, and prepare reports.

Norcross, Ga.-based Melita is in the same business.

Concerto also announced yesterday that it expected to record revenues of $26.5 million to $27.2 million and earnings per share of 7 or 8 cents in the period ending Sept. 30. The company hasn’t indicated when it will officially report those results.

Concerto reported 2002 sales of almost $100 million.