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Strategies & Market Trends : India Coffee House -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (7035)	9/21/1999 2:17:00 PM
From: Nick	Respond to of 12475

Welcome back Mohan.

To: Mohan Marette who wrote (7035)	9/21/1999 2:42:00 PM
From: JPR	Respond to of 12475

Mohan: Did you hear about the news that Benazir's husband now is charged with trafficking in drugs? Benazir's husband claims that the charges are politically motivated. Welocme back JPR

To: Mohan Marette who wrote (7035)	9/21/1999 4:33:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 12475

Indian sells Internet company to Inktomi for $106 million (Wednesday, September 22, 1999) Abhijit Das in Mumbai Swapnil Shah is yet another name which can adorn the growing list of Indian techies, who have started tech start-ups in the US and then sold out to larger companies. WebSpective Software, set up by Shah, was acquired by Inktomi of the US for $106 million (460 crore), recently. The deal, though not as huge as the one closed by Sabir Bhatia of Hotmail ($400 million), is big enough to raise eyebrows. Incidentally, one of the biggest deals involving Indian-promoted start-ups being sold was when Cerent was acquired by Cisco for $6 billion. WebSpective Software is an integrated solution provider for web hosting and content distribution software. Inktomi expects the deal to close in the next quarter, subject to customary closing conditions. The company was set up by Swapnil Shah, along with two other founders Jason Debetencourt and Stanley Yamane, with two venture funds -- Charles River Venture and Bessemer Venture Partners -- acting as sleeping partners. Drapers also had a minority stake in the company. Unlike Sabir and many others who preferred to cash in on the opportunity, Swapnil has decided to acquire the stock of Inktomi and is on the company's board as the director, strategic planning. Speaking to Business Standard, Swapnil Shah said, "The company was in need of funds and was contemplating an IPO when Inktomi approached us and offered a very good deal. Hence, the decision to sell." Inktomi will acquire 100 per cent of the outstanding stock and assume all stock options of WebSpective Software in exchange for shares of Inktomi common stock, and will account for the transaction as a pooling of interests. The Inktomi stock was trading at $131.69 at 1830 hrs IST. The acquisition will enable Inktomi to extend its Traffic Server platform with the addition of new core technologies, providing Internet companies with the industry's first integrated software solution for content distribution, delivery and management. WebSpective will give Inktomi the ability to deliver a robust solution for the growing Web hosting marketplace, which is projected to reach $14.6 billion by 2003, according to a research carried out by a leading agency Forrester Research. Inktomi Traffic Server is already in use at Web hosting companies including Cable & Wireless, Digital Island, and Exodus. In addition, the WebSpective software will provide Inktomi with key components for the enterprise marketplace, which Inktomi plans to enter later this year.