ActekSoft Acquired by Callidus Software

Callidus Continues to Extend Sales Performance Management Leadership through Purchase of Leading Provider of Commission and Compliance Software Solutions for Insurance and Financial Services Industries

SAN JOSE, Calif., January 11, 2010 — Callidus Software Inc. (NASDAQ: CALD), the leader in Sales Performance Management (SPM), today announced that it has closed its acquisition of ActekSoft (also "Actek” or “ACTEK, Inc.”), a leading provider of commission and compliance software for complex selling environments.

Through the acquisition, Callidus Software extends its footprint to provide the most comprehensive offering of on-demand and on-premise sales lifecycle management solutions in the insurance and financial services industries. These solutions optimize agent capacity planning, selection and on-boarding, licensing and appointment management, and pay for performance, giving customers the ability to align their sales force and channels with their business objectives and consistently and reliably execute on sales results.

“The insurance marketplace is the proving ground for sales performance management,” said Leslie Stretch, president and CEO at Callidus Software. “Commissions processing and agent lifecycle management are the most business critical elements to these clients. The combination of Callidus and ActekSoft provides, in a single step, a level of operational excellence and industry knowledge that is currently unmatched by any of our competitors. This, coupled with our global footprint, ensures Callidus is in pole position to meet the needs of any company considering a commissions and sales lifecycle management solution. We expect to be able to bring ActekSoft’s customer-centric approach and deep domain knowledge in the commissions space to our clients, and in parallel, to continue to enhance and support the ActekSoft solutions to deliver the industry-leading agent management and commissions capabilities ActekSoft’s clients demand.”

“The combination of ActekSoft with the development capacity and operational maturity of Callidus Software assures our continuing customer success,” said Farley Lavett, co-founder and president of ActekSoft. “This opportunity will allow us to be even more effective in delivering high quality solutions to our growing base of satisfied customers. We are proud to become part of the world’s leading SPM company and look forward to enhancing the broad portfolio of business management, technology, and client services that we bring to the marketplace.”

With the addition of ActekSoft, Callidus Software now serves customers in over 140 countries. Callidus Software and ActekSoft are two of the only three companies that received a “positive” rating in Gartner’s 2009 MarketScope for Insurance Compensation Management Applications.¹

Financial terms of the transaction were not disclosed.

¹ The MarketScope is copyrighted December 16, 2009 by Gartner, Inc. and is reused with permission. The MarketScope is an evaluation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the MarketScope, and does not advise technology users to select only those vendors with the highest rating. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.