ClearStory Systems, Inc. (BULLETIN BOARD: CSYS) announced a definitive agreement with Datawatch Corporation (NASDAQ:DWCH). Under the terms of an asset purchase agreement, Datawatch Corporation will acquire intellectual property and a portfolio of assets associated with ClearStory’s Radiant Document Solutions including its Radiant Business Document Server Suite and Radiant MailManager. Radiant Business Document Server (BDS) is a system for high-volume document capture, archiving, and online presentment within financial services, insurance, and healthcare markets. Radiant MailManager is a scalable e-mail active archiving solution that provides lifecycle, compliance, and storage management for the corporate e-mail knowledge base. The boards of directors for the respective companies have approved the definitive asset purchase agreement. The purchase price under the asset purchase agreement is $4.3 million in cash at close, with an earn-out, calculated by multiplying the net revenues derived from the product sales by 30% for the next 18 months. The closing of this transaction will allow ClearStory Systems to focus on its core digital media businesses, while enabling Datawatch to immediately increase its presence and customer base in the document solutions market, including its email management and archiving solution, The transaction is contingent upon certain customary closing conditions and regulatory approvals, and is expected to occur on April 14, 2006. , http://www.datawatch.com

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