i2 Technologies announced it would acquire Smart Technologies, a provider of internet-based customer relationship management software, in a stock transaction valued at $68m. The Irving, Texas-based supply chain management software provider will issue 2.1 million shares of its common stock in exchange for all the outstanding shares and options of Smart. i2 says the deal comes as part of its overall e-business strategy and believes the combination of Smart’s web-content building applications with its business process optimization software will enable it to offer customers a more comprehensive e-business package. The company feels there is a great deal of potential in the market that Smart’s software addresses and says it will invest aggressively to capitalize on it. For the near-term, however, i2 expects the acquisition to be dilutive until the fourth quarter of 2000, and to add to earnings after that.
As predicted, the dregs of whiz kid-turned-was kid PointCast have been sold to idealab! for the meager sum of about $7m in cash and stock, according to reports. The acquisition will join idealab’s Launchpad Technologies Inc unit with PointCast, combining the former’s eWallet consumer shopping tool with PointCast’s channel- based content delivery. PointCast, which was founded in 1992 and publicly launched in 1996, has been the subject of more takeover rumors than probably any other internet company, but has finally thrown in the towel for a sum that would have been unthinkable even a few months ago. PointCast is widely rumored to have been approached by News Corp the spring of 1997 with a view to buying the Sunnyvale, California company for around $450m in cash. But that proved to be the company’s zenith. It quickly became embroiled in arguments that it was a bandwidth hog which it never really shook off despite changes of direction, leadership and a initial public offering valuing the company at $256m, which it launched one year ago and pulled two months later.
German database and e-commerce software developer Software AG paid an unspecified amount to acquire Software Computing Power (SCP), a Dublin-based provider of internet connectivity for mainframes. The acquisition gives Darmstadt-based Software AG exclusive use of SCP’s package for connecting mainframe computers to the internet for e-commerce applications. The software enables web browsers to communicate directly with mainframe computer programs.
Vignette acquired Diffusion, a provider of multi-channel information delivery technology. Austin, Texas-based Vignette, which provides web content application development tools, will hand over 400,000 shares of it common stock for Diffusion, valuing the deal at $32.9m based on last Monday’s $82.25 closing price. The acquisition is designed to strengthen Vignette’s internet relationship management offerings – specifically its StoryServer web publishing software – by adding Diffusion technology which will enable companies to exchange information with customers via the web, email, fax, telephone or pager. Vignette said it will account for the deal, which is expected to close by June 30, as a purchase and will take an unspecified one- time charge to cover acquisition costs and integration-related issues.
