Ventro™ Corporation (Nasdaq: VNTR), a pioneer in business-to-business e-commerce, announced today
that it has signed a definitive agreement to acquire privately held NexPrise, Inc., a provider of collaborative commerce solutions located in Santa
Clara, California. The combined entity will leverage the strengths of both organizations to provide enterprise solutions for Internet-based
collaborative commerce.
NexPrise's products allow manufacturers, suppliers, customers, and partners to collaborate on e-business processes such as product design and
engineering; complex procurement and strategic sourcing; and program and
project management. The NexPrise solutions are designed for rapid
implementation within a customer's environment. Since its inception, NexPrise has brought new advances in collaborative commerce to the market,
and has successfully built a solid base of top-tier customers, including Boeing Rocketdyne, Sikorsky, and Lockheed Martin.
Under the terms of the stock purchase agreement, the expected cost of the transaction will be approximately $27 million, inclusive of liabilities
assumed and transaction costs. The net cash outlay to close the transaction should approximate $22 million. As part of the transaction, Ventro will
assume NexPrise's obligations under existing option plans, which may result in the issuance of 3.3 million Ventro shares, and under a warrant with
Covisint, LLC, which may result in the issuance of 2.4 million Ventro shares. The value of these projected share issuances is included in the $27
million cost. The boards of directors of both companies have approved the merger. The closing of the merger is subject to the approval of
NexPrise's shareholders and other conditions, including the receipt of various consents. The parties expect the merger to close before the end of the
third quarter. Operations will be consolidated in Ventro's Mountain View headquarters.
"The NexPrise acquisition is an important step in our
evolution," said David Perry, CEO of Ventro. "We believe that collaborative commerce is the
most interesting growth area in business-to-business e-commerce. This acquisition provides us with mature technology with which we can address
the unmet need of customers in discrete and process manufacturing industries."
"We are very excited about this transaction," said Ted Drysdale, CEO of NexPrise and President of Ventro upon close of the transaction. "The
combination of our innovative technologies, business-to-business thought leadership, and capabilities in procurement, workflow automation, and
design collaboration provides a significant opportunity to define and deliver the future of collaborative commerce."
Collaborative commerce solutions create efficiencies by automating the design and procurement processes among companies, their partners, and
their suppliers. For discrete manufacturers, these solutions reduce time-to-market by optimizing the product development process, from concept
to mass production. For process manufacturers, these solutions reduce time-to-operations of strategic construction and maintenance projects by
optimizing the engineering design and procurement process.
The union of Ventro and NexPrise will uniquely address the needs of companies who want to e-commerce enable their collaborative business
processes, allowing them to accelerate decision velocity and increase visibility across their supply chain.