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NetIQ makes $1B buy
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January 17, 2001: 10:06 a.m. ET
Acquisition of WebTrends creates leading infrastructure and analytics firm
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NEW YORK (CNNfn) - NetIQ Corp., a provider of infrastructure management for Windows-based computer systems, agreed Tuesday to acquire Internet analytics firm WebTrends Crop. for approximately $1 billion in stock.
The combined company will offer services ranging from systems administration and network performance management to security management and e-business analytics.
"This combination is a strategic fit that brings together two leaders focused on helping companies increase the return from their e-business initiatives," said Eli Shapira, WebTrends chief executive officer, who will become chief strategy officer for NetIQ following the merger.
 Terms of the transaction call for San Jose, Calif.-based NetIQ (NTIQ: Research, Estimates) to swap 0.48 of its stock for each WebTrends (WEBT: Research, Estimates) share, valuing the Portland, Ore.-based company at $36 per share, a nearly 10 percent premium over its closing price Tuesday.
The companies hope to close the deal late in the first quarter or early in the second quarter. NetIQ said approximately 30 percent of WebTrends outstanding shares have already committed to voting for the merger.
NetIQ also said the transaction will add to it earnings per share beginning in the second quarter excluding non-cash acquisition related charges.
But investors were not immediately enthusiastic about the deal. After climbing 25 percent Tuesday as speculation swirled about a possible deal, WebTrends fell sharply shortly after the opening bell Wednesday, losing $2.88 to $30.
NetIQ also fell, shedding $10.75, or more than 15 percent, to $63.25 in early trading. 
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