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News > Deals
Commerce One, AppNet tie
June 20, 2000: 3:51 p.m. ET

E-commerce companies merge in tax-free $1.4 billion stock deal
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NEW YORK (CNNfn) - E-commerce companies Commerce One and AppNet confirmed Tuesday that they had signed a tax-free stock-for-stock merger deal valued at approximately $1.4 billion.

Under the terms of the pact, Commerce One (CMRC: Research, Estimates), which builds Internet-based commercial exchanges, will issue 0.8 shares for each outstanding share of AppNet (APNT: Research, Estimates), and will take on all outstanding stock options and other rights to acquire AppNet Common stock.

In afternoon Nasdaq trading, Commerce One was down 7-1/8 to 44-5/16 and Appnet edged down 1/16 to 34-7/16.

graphicThe deal involves approximately 28 million shares of Commerce One stock, and will close between 75 and 90 days. Commerce One will assume responsibility for approximately 6-1/2 million stock options.

The combined companies will have 44 offices in 18 countries worldwide, with more than 2,300 employees.

"Our customers have told us that they demand solutions to their business problems. They want to extend their enterprise operations to suppliers, customers and business partners," said Ken Bajaj, chairman and chief executive officer of AppNet in a conference announcing the deal. "Our objective is to provide top quality service to our customers."

graphicThe companies said the pact will allow the abilities of each firm to complement each other, with AppNet providing consulting, interactive marketing services, Web design and e-business implementation expertise. Commerce One creates access to worldwide markets, allowing anyone to buy from anyone, anytime, anywhere, with more than 100 trading exchange customers. Back to top

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