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Technology Stocks : E*TRADE IPO Alert - Y2K and Beyond (EGRP) -- Ignore unavailable to you. Want to Upgrade?

To: Jim B who wrote (3336)	3/15/2000 6:55:00 PM
From: Kaissa	Read Replies (1) \| Respond to of 10270

Jim, It says: Wednesday March 15, 6:44 pm Eastern Time FOCUS-E.piphany sets $2.4 bln Octane Software buy (recasts lede, updates deal value, stock prices, adds details from conference call) SAN MATEO, Calif., March 15 (Reuters) - Electronic-commerce software maker E.piphany Inc. (NasdaqNM:EPNY - news) said on Wednesday it would acquire Octane Software Inc. for stock valued at $2.4 billion in a deal that underscores the growing interest in companies that help businesses manage customer interaction. Amid a broad sell-off of technology stocks on Nasdaq, shares of E.piphany fell 25 percent following the announcement, slicing $800 million off the deal's original value of $3.2 billion. E.piphany closed at 187, down 61-15/16 from Tuesday's close of 248-15/16. E.phiphany called the combination ``complementary' but warned in a conference call after the announcement that the deal would lead to higher losses in the near term. ``We expect increased losses in the short term, but don't expect this to impact our time to profitability,' the company said in a conference call. The company gave no date when it expects to become profitable. ``The complementary nature of our business philosophies, vision, management team, employees, products, partnerships and vertical industries is remarkable,' Roger Siboni, president and chief executive of E.piphany, said in a statement. Privately held Octane, based in San Mateo like E.piphany, makes software that manages sales and customer service and support operations. The terms of the deal call for E.piphany to issue about 12.8 million shares of its common stock to Octane's shareholders. On a fully diluted basis, Octane shareholders would hold about 26.5 percent of the combined company, the companies said. The transaction is subject to approval by shareholders of both companies and regulatory approvals, E.piphany said. ``Together, we are able to dramatically expand our footprint in the market and provide a suite of solutions that we believe is generations beyond any other offering,' Tim Guleri, chief executive of Octane, said in a statement. E.piphany went public in September, selling 4 million shares that rose 182 percent to close at 45-3/16 in their first day of trading on the Nasdaq. The stock peaked at 324-7/8 on March 10, but has fallen more than 42 percent since Friday. The acquisition of Octane follows E.piphany's announcement in November that it would acquire privately held RightPoint, which helps coordinate customer communications, in a $383 million stock swap. Competitors of E.piphany include Siebel Systems Inc.(NasdaqNM:SEBL - news) Kana Communications Inc. (NasdaqNM:KANA - news), Brio Technology Inc. (NasdaqNM:BRYO - news) and PeopleSoft Inc. (NasdaqNM:PSFT - news). ``Our shared vision, common culture and geographic headquarters proximity should enable a rapid and seamless integration of the two companies,' Siboni said. Both companies are based in San Mateo, Calif. Upon closing, E.piphany would have more than 500 employees.