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Vignette buys OnDisplay
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May 22, 2000: 8:20 a.m. ET
B2B firms join in $1.7B stock swap, gaining real-time data exchange
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NEW YORK (CNNfn) - Vignette Corp., a leading supplier of e-business software, agreed Monday to purchase OnDisplay Inc. for roughly $1.7 billion in stock, broadening the company's B2B capabilities.
Austin, Texas-based Vignette intends to issue 1.58 shares of its common stock for each outstanding OnDisplay share and hopes to complete the transaction by the end of the third quarter.
The deal rapidly accelerates Vignette's ability to link all parties involved in an online transaction. OnDisplay's infrastructure allows corporations to integrate more closely with their customers and vendors by using the real-time exchange of information and transactions.
"Our customers increasingly require coordination between enterprise systems, suppliers and multiple online marketplaces," said Greg Peters, Vignette's president and chief executive officer.
The combined company will have approximately 2,000 employees and 870 customers around the world. Vignette and OnDisplay also currently share more than 20 customers, including Travelocity.com and the Tribune Corp. (TRB: Research, Estimates).
Vignette (VIGN: Research, Estimates) shares shed 2-15/16 amid the market's sell-off Friday to close at 43-13/16, while OnDisplay (ONDS: Research, Estimates) tumbled 10-1/2 to 53-1/4.
Both firms have suffered as investors have soured on the B2B industry in recent months. Just two months ago, Vignette traded near its 52-week high of 100-21/32 while OnDisplay was valued at more than $132 per share. 
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