CMGI @Ventures Portfolio Company Enters into Definitive Merger Agreement
Thursday October 13, 2:24 pm ET
WALTHAM, Mass.--(BUSINESS WIRE)--Oct. 13, 2005--CMGI, Inc. (Nasdaq: CMGI - News) announced today that one of its @Ventures portfolio companies, WebCT, Inc., and Blackboard Inc. (Nasdaq: BBBB - News) have signed a definitive agreement to merge. The transaction will combine two pioneering academic e-Learning organizations into a single company with the client base, resources and expertise to uniquely meet the rapidly evolving needs of educators and students around the world.
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Under the terms of the agreement, Blackboard will acquire WebCT in a cash transaction for $180 million, which values the offer at approximately $154 million, net of WebCT's August 31, 2005 cash balance of $26 million. The ultimate value of the offer will vary depending on WebCT's cash balance at closing. The closing of the transaction is subject to regulatory approval and other customary closing conditions. WebCT and Blackboard have stated that they expect the transaction will close late this year or in early 2006.
"We are encouraged by the positive activity in the venture capital and mergers and acquisitions markets," said Joseph C. Lawler, President and CEO of CMGI. "Our @Ventures portfolio is well-positioned to benefit from the strength in these markets. CMGI, through @Ventures, continues to be committed to identifying and making early and mid-stage venture capital investments. Now investing from its fifth fund, @Ventures is considering new investments in clean energy technologies, enterprise and security software, and internet technologies and internet-enabled businesses."
@Ventures' fully diluted ownership of WebCT is approximately 13.5%.
About CMGI
CMGI, Inc. (Nasdaq: CMGI - News), through its subsidiary, ModusLink, provides technology and products solutions that help businesses market, sell and distribute their products and services. In addition, CMGI's venture capital affiliate, @Ventures, invests in a variety of technology ventures. For additional information, see www.cmgi.com.
About @Ventures
@Ventures, CMGI's affiliated venture capital group, invests in early-stage and mid-stage technology companies. Formed in 1995, @Ventures has invested in more than 70 Internet, software, and IT companies. For additional information, see www.ventures.com. |
