In a bid to get its exchanges up and running, Commerce One (CMRC:
news, msgs) is buying AppNet (APNT: news, msgs) for about $1.2 billion in
stock, or roughly $35 per AppNet share.
?The Achilles heel for Commerce One has been deploying these
exchanges,? said Ian Morton, an analyst Chase H&Q. ?Essentially, they?re
buying bodies? to help them integrate these e-marketplaces faster.
?It?s in Commerce One?s best interest to get these exchanges up and
running fast,? said Andrew Roskill, an analyst at UBS Warburg.
?They can?t just partner with a consulting firm because that?s punting to
someone else,? he added. By buying AppNet, Commerce One will increase
its consultant base to well over 1,000, up from some 200, said Roskill.
But those bodies could be weighing on the stock.
Shares of Commerce One fell 8 7/16, or 16 percent, to 43. Typically,
software companies trade for higher multiples than hard-to-scale consulting
companies.
?Personally, people should focus on strategic fit,? said Roskill. ?The concern
now would be execution risk but the combination could accelerate
Commerce One?s time to profitability.? The deal should close in 75 to 90
days, noted Roskill. |
