COMMERCE ONE: Commerce One to acquire AppNet; Commerce One to become first fullyintegrated e-Commerce applications and Internet professional services company inthe industry
Mon Jun 19 06:31:00 EDT 2000
JUN 19, 2000, M2 Communications - Commerce One (NASDAQ: CMRC), the leader in
global e-commerce solutions for business, today announced that it has signed a
definitive merger agreement to acquire AppNet (NASDAQ: APNT), a premier provider
of end-to-end Internet professional services. With this acquisition, Commerce
One plans to rapidly accelerate the implementation of e-marketplaces and trade
exchanges worldwide and offer a comprehensive set of e-business services to help
companies accelerate their e-commerce potential.
The merger is structured as a tax-free, stock-for-stock exchange, and will be
accounted for as a purchase transaction. Commerce One will issue approximately
0.8 shares for each outstanding share of AppNet. Conclusion of the acquisition
requires the approval of both companies' stockholders, approval by the
Securities and Exchange Commission and other typical conditions.
Acquiring AppNet is one of several steps Commerce One will take to provide the
resources and skill sets necessary to fulfill Commerce One's objective to
establish a world-class professional services group, assuring customers and
partners of complete and timely business planning, implementation and exchange
operations.
"We are joining forces with an industry leader in Internet professional services
because we recognise that rapid implementation of our portal solution and moving
our customers up the e-commerce value chain quickly is critical to our customers
and partners worldwide, " said Mark Hoffman, president and CEO of Commerce One.
"With the acquisition of AppNet, we are ideally positioned to deliver the
end-to-end e-commerce solutions of the future."
Prior to the acquisition, Commerce One conducted a full-scale search for a
professional services organisation that clearly aligned with Commerce One's
vision, culture, and energy. Commerce One identified AppNet as the most
desirable firm based on its end-to-end Internet professional services
capability, B2B e-commerce strengths, project management skills, number of
employees, vertical focus, geographic focus and target customers. "AppNet's
experience and strategic focus is a perfect match for Commerce One's portal
strategy," said Hoffman. "Their knowledge and dedication will help us deliver
the quality and market readiness that our customers and partners have come to
expect of Commerce One."
By acquiring AppNet, Commerce One will be able to accelerate its role as the
industry leader in B2B e-commerce. Additional resources for strategic
consulting, interactive marketing and Web design, and e-business implementation
will help generate recurring revenue, increase market share, shorten time to
profitability and drive shareholder value as global B2B communities mature.
AppNet will complement the efforts of Commerce One's professional services
partners, who will continue to play a major role in the development of B2B
e-commerce.
"In the two months since we announced our alliance with Commerce One, the two
companies have realised just how closely aligned our visions, values and
cultures are with one another," said Ken Bajaj, Chairman and CEO of AppNet.
"By formally combining AppNet and Commerce One, we become uniquely positioned to
offer a powerful combination of e-commerce applications and Internet
professional services to trading communities."
According to Forrester Research, companies typically spend more than five times
the amount they spend on software application licensing and maintenance fees on
strategy consulting, systems integration, and implementation services when
implementing online procurement. By acquiring AppNet, Commerce One will be able
to provide more of the consulting and integration services itself, in tandem
with the select group of world-class systems integration alliance partners it
has. Commerce One also establishes a new revenue source through AppNet's broad
ranging Internet professional services offerings.
Industry analysts such as Forrester Research and Gartner Group have also been
reporting that companies are seeking to simplify the number of companies they
must work with to implement their e-business strategies.
This acquisition will help Commerce One offer not only an industry-leading
online procurement technology platform, but a whole host of e-business
professional services, creating a unique e-business solutions capability within
the industry.
Commerce One and AppNet to Merge Operations With this acquisition, Commerce One
will maintain and grow AppNet's Bethesda, Md. site as a major professional
services center for Commerce One.
The combined companies would have 44 offices in 18 countries around the world.
The total number of employees would equal more than 2,400. "We are delighted to
welcome all of AppNet's employees to the Commerce One family," said Hoffman. "We
not only plan to retain these people but also intend to aggressively grow this
part of our business for the foreseeable future."
About Commerce One
Commerce One (NASDAQ: CMRC) is the leader in global e-commerce solutions for
business. Through its products, portals, and services, Commerce One creates
access to worldwide markets, allowing anyone to buy from anyone, anytime,
anywhere. The Commerce One Global Trading Web(tm) is the world's largest
business-to-business trading community. Comprised of many open e-marketplaces,
the Global Trading WebTM provides unprecedented economies of scale for buying
organisations, suppliers, and service providers worldwide.
Commerce One is located in Pleasanton, Calif., and can be reached by phone at
(800) 308-3838 or (925) 520-6000 or in Europe on [+44 208 956 2273] or via the
Internet at
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