UPDATE 1- Commerce One to buy AppNet in stock deal
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(Adds details, background, comment)
PLEASANTON, Calif., June 20 (Reuters) - Commerce One Inc.
(NASDAQ:CMRC), which builds Internet-based commercial exchanges,
said on Tuesday it signed a deal to acquire Internet consulting
firm AppNet Inc. (NASDAQ:APNT) in a stock deal worth about $1.24
billion.
Pleasanton, Calif.-based Commerce One said it would issue
0.8 shares of its stock for each outstanding share of Bethesda,
Maryland-based AppNet.
Commerce One stock was off 5-3/4 at 45-11/16 in afternoon
trading on Nasdaq after the deal was announced. The value of
the deal fluctuates with Commerce One's stock price.
Based on 33.84 million AppNet shares outstanding at the end
of the first quarter, the deal values AppNet at about $1.24
billion. Commerce One stock is less than a third of its 52-week
high of 165-1/2, but far above its 52-week low of 4-3/8.
AppNet stock was up 1/4 at 34-3/4 on Nasdaq, about half of
its year high of 71-5/8 but well above its 52-week low of
8-5/8.
Commerce One said the acquisition would significantly
enhance its ability to deliver e-commerce services to its
customers and would accelerate the pace of implementation for
its business-to-business exchanges worldwide.
"Commerce One has over 100 trading exchange customers who
are demanding implementation and consulting services to execute
rapidly on their business models," Commerce One Chairman Mark
Hoffman said in a statement. "With the acquisition of AppNet,
we are ideally positioned, in combination with our key
consulting partners, to deliver these capabilities."
The acquisition will be structured as a tax-free,
stock-for-stock exchange, and will be accounted for as a
purchase transaction, Commerce One said.
The deal requires the approval of AppNet stockholders.
AppNet would complement Commerce One's current service
offerings and in addion would provide strategic consulting
expertise, interactive marketing services, Web design, and
e-business implementation expertise.
The combined companies would have 44 offices in 18 countries
around the world. The total number of employees would equal
more than 2,300, Commerce One said.
The announcement came a day after AppNet Inc. had said it
was in merger talks with Commerce One -- and after a statement
proclaiming a definitive merger agreement was released by
accident.
Copyright 2000, Reuters News Service
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