Divine buying more companies.
divine and RoweCom Sign Definitive Agreement
RoweCom Content Offerings and Procurement Technology to Be Key Components Of divine's Knowledge Resources Solutions
CHICAGO, July 9 /PRNewswire/ -- divine, inc. (Nasdaq: DVIN - news), a leader in community-facing enterprise solutions offering global businesses the ability to improve collaboration, workflow and business relationships by delivering a powerful combination of services, technology and managed application capabilities, announced today that it has signed a definitive agreement to acquire RoweCom, Inc. (Nasdaq: ROWE - news), a global provider of high-quality service and e-commerce solutions for purchasing and managing print and e-content knowledge resources.
The agreement provides for a stock-for-stock exchange in which RoweCom shareholders will receive .75 share of divine Class A common stock for each outstanding share of RoweCom. Based on divine's closing price on July 6, 2001, the acquisition would have an aggregate value of approximately $14.0 million. The transaction requires RoweCom shareholder and regulatory approvals, and is subject to satisfaction of other closing conditions.
``RoweCom's innovative knowledge resource solutions and its outstanding client base ranging from Global 1000 companies and academic libraries represent a compelling fit with divine's enterprise solutions,'' said divine Chairman and Chief Executive Officer Andrew ``Flip'' Filipowski. ``We anticipate this acquisition will expand our international presence and will further our strategy of providing the professional services, Web-based technology, premier knowledge resources, and managed applications that help the global enterprise manage information resources and engage their constituent communities.''
RoweCom's content offerings and procurement technology are expected to be key components of divine's knowledge content solution, providing a single source for electronic procurement of books, magazines, professional journals, databases, reports, newspapers and news in hard-copy and digital form. The combination of RoweCom offerings and divine software applications, including divine Tracker(TM), which gives clients the ability to track usage of digitally distributed content, will provide enterprise and academic clients the ability to conveniently and cost-effectively procure and manage all of their knowledge resources via the Internet. divine is committed to supporting RoweCom's premier academic and library services, offered under the brand of Faxon Library Services, while also developing services to new market segments.
``We are excited about the opportunity to leverage our industry-leading knowledge resource solutions within the divine knowledge network,'' said Dr. Richard Rowe, RoweCom's chairman and CEO. ``As part of divine, we expect to be able to offer biomedical, high-technology, business & finance, academic, corporate and government clients the best of all worlds: high-quality personalized service, outstanding e-commerce solutions, a broad range of content, and the backing of a company that has a shared philosophy on information management, a strong financial position, and a proven executive management team.''
RoweCom is a leading provider of sophisticated tools and client service for purchasing and managing the acquisition of magazines, newspapers, journals and e-journals, books and other knowledge resources. Its clients range from academic libraries to Fortune 1000 companies, and could include any enterprise with intensive knowledge requirements and high-volume purchases.
Based in Westwood, Mass., and founded in 1994, RoweCom has international offices in Canada, United Kingdom, France, Spain, Australia, Taiwan/Hong Kong, and Korea, and a regional office in New Jersey. RoweCom, which trades on Nasdaq under the symbol ROWE, reported revenue of $347.6 million for the year ended Dec. 31, 2000. International sales represent approximately 35 percent of RoweCom's total revenue. RoweCom has more than 500 employees worldwide.
Upon consummation of the acquisition, RoweCom will operate as a wholly owned subsidiary of divine, while working to integrate its products and services with other divine offerings. Dr. Rowe will join divine's management team as chief knowledge officer. RoweCom Chief Operating Officer Jim Krzywicki will assume the role of president of the RoweCom division. Through the acquisition, RoweCom will be able to expand its offerings to current customers, and leverage divine's Web-based infrastructure to improve the efficiency of its content delivery
Monday July 9, 9:59 am Eastern Time
Divine to buy eshare for $71.1 million stk
CHICAGO, July 9 (Reuters) - Divine, Inc. (NasdaqNM:DVIN - news), an Internet holding company, said on Monday it has agreed to buy software provider eshare communications, Inc. (NasdaqNM:ESHR - news) for about $71.1 million in stock.
Under the agreement, divine will buy all of eshare's stock for between $3.12 and $3.653 a share, depending on divine's trading price prior to the closing.
Eshare's stock rose 107 percent, or $1.37, to $2.65 in early Nasdaq trading. Divine shares were up 5 cents at $1.54.
The transaction has been approved by the boards of both companies and is expected to close by the end of September. Divine said the acquisition will boost its 2002 operating results.
Norcross, Georgia-based eshare, which had 2000 revenue of $83.96 million, provides software that helps businesses communicate with their customers through e-mail, the Web and the telephone. divine, based in Chicago, promotes the development of new technologies, products, and services that improve how businesses manage information, engage their constituents, and develop new market opportunities. |
