REDWOOD SHORES, California and LONDON, June 5 /PRNewswire/ --

- Merced Systems Assumes Leadership Position in the Sales and Service
Performance Management Market, Providing Analytic Applications to Critical
Customer-Facing Operations

Merced Systems, the leader in sales and service performance management
software, today announced that it has acquired Practique Associates, a
privately held, UK-based company, and European market leader in incentive
compensation management (ICM) solutions. Practique Associates will operate in
Europe as a wholly owned subsidiary of Merced Systems, allowing the company
to continue its impressive track record of growth and profitability.
Combined, the two companies offer the only performance management solution on
the market today that serves both sales and service organizations in a
unified fashion. These sales and service organizations include contact
centers, field sales, retail sales, partner operations, back office
functions, and field service groups, and carry the critical responsibility to
acquire, support, and ensure the loyalty of customers.

Sales and service performance management enables organizations to drive
performance across all customer-facing functions and dramatically improves
customer lifetime economic value. Sales and service performance management
capabilities including incentive compensation management, consolidated
reporting, dashboarding, analytics, coaching and other applications that
drive behavior change among customer-facing and servicing staff. Sales and
service performance management is one of the least penetrated and fastest
growing sectors in the performance management market.

"Merced Systems is at the forefront of a growing movement to help
companies achieve true customer centricity," said Joshua Greenbaum, principal
of Enterprise Applications Consulting. "Companies recognize that acquiring,
successfully servicing, and ultimately retaining customers is essential to
their continued growth. With the acquisition of Practique, Merced has added a
critical component, incentive compensation management, to their innovative
service performance management platform, and is now the first organization in
the market to offer sales and service performance management applications
targeted at making companies more successful by making them more customer
centric."

"Merced is uniquely positioned to help sales forces and service
organizations drive improvement," said Merced Systems CEO, Matt Glickman.
"With the acquisition of Practique, Merced provides a combined and integrated
performance offering that encompasses all customer-serving operations within
a single family of applications. Our broad portfolio of products drives core
behavior change at the front line of sales and service organizations which
boosts customer experience, operational efficiency, revenue generation, and
employee engagement."

The marriage of these two sector leaders will result in an unparalleled
Performance Management company. Bringing together two critical product
categories and two expert teams, strength in multiple geographies, and a
common vision, the acquisition uniquely positions Merced Systems in the
market. The company can now provide greater business impact by adding new
capabilities to the traditional sales performance management category,
including coaching, and advanced analytics. Additionally Merced Systems'
category leading service performance management offering is strengthened by
the addition of world-class incentive compensation management. The result is
a powerful and comprehensive performance management portfolio.

"Bringing Practique's experience and innovation into the Merced product
family will create an unrivaled depth of sales and service domain expertise,"
said Merced Systems' President, Mark Selcow. "Each company has individually
driven significant business impact for its customers, including sales
increases, improvements to customer satisfaction and lifetime value, and cost
reduction. This combination, and our unified sales and service performance
management offering, will allow us to go even further in helping our
customers acquire and serve their end customers more successfully."

"Both Practique and Merced have a reputation for quality, strong
leadership, and forward-looking visions in their respective markets," said
Managing Director of Practique, Jo Walker. "The marriage of Merced Systems
and Practique is powerful. It quickly became apparent that we share certain
core values about how to grow our business and how to treat our customers and
employees. The acquisition makes sense not just because there is a growing
market need for a dual sales and service performance management solution, but
because the companies share a similar heritage and have each developed their
respective businesses with similar values and goals."

More detailed information about the acquisition can be viewed here:
http://www.mercedsystems.com.

About Merced

Merced Systems is the leading provider of Sales and Service Performance
Management applications focused on improving operational effectiveness of
sales forces and service organizations across a range of vertical industries.
Merced Systems' award winning products serve Global 2000 customers, and
include advanced analytics and reporting, incentive compensation management,
coaching and other performance execution applications, With a strong track
record of growth and delivering business impact to its customers, Merced
Systems has been profitable for the past 5 years. Merced Systems is a
privately held venture capital-based company headquartered in Redwood City,
CA., with major operations in the UK. For more information on Merced Systems,
please visit http://www.mercedsystems.com.

Web site: http://www.mercedsystems.com