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Kana, Silknet to merge
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February 7, 2000: 9:31 a.m. ET
Software firms unite in $4.2B stock deal to expand online customer base
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NEW YORK (CNNfn) - Kana Communications Inc., an online customer communications provider, and Silknet Software Inc., a provider of customer e-business applications and systems, announced Monday they have agreed to merge in a stock deal worth $4.2 billion.
Terms of the agreement call for each outstanding share of Silknet (SILK: Research, Estimates) common stock to be exchanged for 0.83 share of Kana (KANA: Research, Estimates) common stock, which equals a 21 percent premium over the average exchange ratio for the last 30 days.
On a fully diluted basis, Kana will issue roughly 16.4 million shares of common stock, which has the value of $4.2 billion, based on Kana's Friday closing stock price of 258-7/8. That figure represents 33.7 percent of the combined company.
Kana's customers include Microsoft (MSFT: Research, Estimates), Williams-Sonoma (WSM: Research, Estimates), E*Trade (EGRP: Research, Estimates) and eBay Inc (EBAY: Research, Estimates).
In recent months, Redwood City, Calif.-based Kana has acquired closely held Connectify, BEI and NetDialog to boost its Internet marketing system.
"This combination enables Kana to expand our leadership by providing a Web-architected e-business platform and a comprehensive suite of customer-facing applications for marketing, sales and service communications," said Michael McCloskey, chief executive of Kana. "We expect significant interest from Kana's customers for Silknet's solutions as it represents a natural progression in the development of an e-business infrastructure." 
-- from staff and wire reports
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Silknet
Kanal
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