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Merriman Capital Initiates on Pegasystems Inc. with a Buy Rating

May 15, 2014

SAN FRANCISCO - May 15, 2014 - Merriman Capital, Inc. ("Merriman"), a wholly owned subsidiary of Merriman Holdings, Inc. (OTCQX: MERR), announced that it has initiated equity research coverage of Pegasystems Inc. (NASDAQ: PEGA) with a Buy rating and a $24 price target. Pegasystems, Inc. (www.pega.com) provides software and professional services to automate and manage complex, continually evolving business processes and customer interactions. The company's software helps businesses engage customers, simplify operations, and quickly adapt their enterprise applications to a rapidly changing market environment. Pegasystems, Inc. was founded in 1983 and completed an initial public offering in July, 1996, raising $29 million. In January 1997, the company raised an additional $52 million with a follow-on offering. Inspired partially by the founder's earlier experience in teaching computers how to play chess, PEGA pioneered the development of business process management software and rules engine platforms. Alan Trefler is the founder, CEO and chairman of the board, as well as the company's largest shareholder with a 52% ownership interest. Rafe Brown joined the company, as CFO, in September, 2013, after spending nine years at Salesforce.com (NASDAQ:CRM, $51.88, NR). Following several years of sluggish revenue growth (4% revenue CAGR from 2000-2005), PEGA changed its go-to-market strategy in 2005, subsequent to a complete re-architecting of the core product. From a go-to-market perspective, the company separated the sales of applications from its core BPM platform, allowing for smaller initial deal sizes and a more simplified sales process, which also helped to increase the participation of third-party service providers. Additionally, the company moved to a "named account" sales model and migrated from an all-or-nothing RFP-style sales process to "foot-in-the-door" deals much more limited in scope, with modest initial license sales and more regular follow-on business. Following the change in strategy, financial performance improved and PEGA steadily evolved from a niche provider into the world's largest pure-play BPM vendor. Over the past eight years, PEGA has posted a 23% (largely organic) revenue CAGR, growing from $100 million in sales in 2005 to north of $500 million in 2013. CLICK HERE FOR FULL REPORT About Merriman Capital, Inc.Merriman Capital, Inc. is a full service investment bank and Broker-Dealer that facilitates efficient capital formation through a proprietary digital network, and offers Capital Markets Advisory and comprehensive Corporate Brokerage services for public and private companies. The firm also provides equity and options execution services for sophisticated investors and differentiated research for high growth companies. Merriman Capital, Inc. is a wholly owned brokerage subsidiary of Merriman Holdings, Inc. (OTCQX: MERR) and is a leading advisory firm for publicly traded, high-growth companies. Digital Capital Network, powered by Merriman Capital, is a capital marketplace that enables highly targeted and more efficient execution of transactions. Please visit our website for more information on how you can be a part of our Digital Capital Network: http://www.digitalcapitalnetwork.com. Merriman Capital, Inc. is a registered broker-dealer and member of The Financial Industry Regulatory Authority (FINRA) http://www.finra.org/ and the Securities Investor Protection Corporation (SIPC) http://www.sipc.org/. Note to Investors This press release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. This release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-K filed on March 31, 2014. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise. The Form 10-K filed on March 31, 2014, together with this press release and the financial information contained herein, are available on our website, www.merrimanco.com. Please click on "Investor Relations." # # # At Merriman: Adriana Piltz Director of Research Merriman Capital, Inc. (646) 292-1424 Brian Murphy Managing Director Equity Research (646) 292-1411 Howard Bernstein Chief Compliance Officer Merriman Capital, Inc. (415) 262-1377 For Disclosures please see full report in the link above. This announcement is distributed by GlobeNewswire on behalf of GlobeNewswire clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Merriman Holdings Inc. via GlobeNewswire [HUG#1786133]


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