Hey Tom, I guess I shoulda' listened to Benny and Dave s. back when they grabbed it for I think 5 bucks! (REUTERS) SBC to buy Sterling Commerce in $3.9 billion deal
SBC to buy Sterling Commerce in $3.9 billion deal
SAN ANTONIO, Feb 22 (Reuters) - Local telephone service
giant SBC Communications Inc. <SBC.N> said Tuesday it would buy
Sterling Commerce <SE.N> in a deal valued at $3.9 billion,
throwing itself into the hot business-to-business e-commerce
market.
SBC said it would offer $44.25 cash per share of Sterling
Commerce, an electronic-commerce software provider. The tender
offer should start in the next several days and is expected to
close in March or during the second quarter, the company said.
The move comes a week after the U.S. Justice Department said
it opposes SBC's effort to crack the $6 billion market in Texas
and become the second "Baby Bell" to offer long-distance service
to its local customers.
"This is an outstanding addition to our already strong
line-up of data services, enhancing our ability to offer our
business customers integrated, end-to-end e-business solutions
worldwide," said Edward Whitacre, SBC's chief executive officer.
"This instantly gives SBC the skill sets, software, products
and services needed to take the lead in one of the most rapidly
growing segments of the e-commerce market," he said.
Sterling Commerce will operate as a separate subsidiary
within SBC's Global Markets group, SBC said. Sterling will
remain in Columbus, Ohio.
Two weeks ago, Sterling posted first-quarter earnings of
$27.3 million, or 34 cents a share, on total revenues of $138.1
million. As of Dec. 31, the company had 80.99 million shares
outstanding on a diluted basis, according to federal filings.
SBC's acquisition of Sterling Commerce builds on a series of
initiatives SBC has recently made to provide its customers with
end-to-end data and Internet-driven solutions and services.
In early February, SBC and Mexican telecommunications
powerhouse Telefonos de Mexico (Telmex) <TELMEXL.MX> <TMX.N>
said they would invest $150 million in high-speed Internet
access provider Network Access Solutions <NASC.O>.
The company also agreed in December to acquire a stake in
Brazilian wireless provider Algar Telecom Leste SA.
((New York Newsdesk 212-859-1700))
REUTERS
*** end of story *** |
