First Virtual Holdings Inc, the internet messaging technology company controlled by Softbank Holdings Inc, has signed an agreement to acquire Email Publishing Inc, causing First Virtual’s share price to shoot skywards, albeit from a low base. First Virtual paid $27.8m in stock, based on Friday’s closing price. First Virtual will exchange six million of its shares for 100% of Email Publishing’s stock. Email publishing provides message delivery and email subscription management services. Although Softbank is the largest single investor in both companies – it was one of the seed investors in Email Publishing back in October 1996 – Andrew Currie, president of Email Publishing said it wasn’t Softbank that brought the two companies together this time – he has known First Virtual for some time. Softbank holds a minority stake in privately-held Email. Currie said all the employees, including the management will be moving over the First Virtual. First Virtual’s shares closed up $1.875, or 40.5% at $6.50 on more than ten times its normal volume.
