Web-based supply chain software vendor Agile Software Corp has struck a deal to acquire Digital Market Inc for $72m in cash and stock. Sunnyvale, California-based Digital Market provides internet-based software for the sourcing and procurement of direct production materials. Its customers include LG Electronics Inc, Lexmark Inc, and Solectron Corp. San Jose-based Agile says it will integrate Digital Market’s technology with its Agile Anywhere software, giving it a more robust internet-based offering for the $600bn electronics industry supply chain.
Terms of the deal call for Agile to pay $20m in cash and roughly $52m in common stock – subject to a minimum of 612,000 shares and a maximum of 1.49 million shares – based on the average closing price before the acquisition is completed. Agile also will assume the unvested options granted by Digital Market and issue additional stock options to some of the newly-acquired company’s employees. The transaction will be accounted for as a purchase.
