[BusinessTeam] Extricity

Message-ID: <6B75EF096AE0BE428B8CEDEA89C5F632782371@exchange01.lab49.com> · Tue Mar 13 16:07:15 2001 UTC

Peregrine Buys App Firm Extricity in $168 Million Stock Swap
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SAN DIEGO, Calif. (VENTUREWIRE) -- Peregrine Systems, a publicly traded
company that provides an e-commerce network for data transformation and
catalog management, announced it will acquire Extricity, which makes
business-to-business integration software, in a stock swap. According to
the deal, Peregrine will issue approximately 9.2 million shares of common
stock, valued at $168 million based on Monday's closing price, for
Extricity's outstanding stock. Deutsche Banc Alex. Brown advised
Extricity, while Credit Suisse First Boston advised Peregrine in the deal.
The companies expect to close the transaction late in March. The acquired
company will become part of Peregrine's E-Markets Group (EMG), and is
expected to contribute about $35 to $40 million of the division's total
revenues for the coming fiscal year, which are expected to total between
$230 and $240 million. Extricity CEO Barry Ariko will remain with
Peregrine for six months to oversee the transition; though he will join
the board of directors, he plans to leave the new company. Senior
executives Nicole Eagen, Thomas Lavey, and Greg Olsen are expected to
serve in their current capacity with the EMG Group. Of the 285 Extricity
employees, a Peregrine spokesperson said that about 200 could expect to
remain in the same job; others may or may not be offered new positions at
Peregrine. Founded in April 1996, Extricity had received $35 million in
five rounds from investors including Bay Partners, B.J. Cassin, and Telos
Ventures. Last May 2000 Extricity raised $50 million in a mezzanine round
from Charter Growth Capital, Charter Venture Capital, Broadview Capital
Partners, Invesco, and Technology Crossover Ventures. Strategic investors
included Aspen Technology; Intel 64 Fund; Manugistics; SAP Ventures, a
division of SAP AG; and Wingspring. Although Extricity had planned to make
a public offering in October 2000, market conditions forced the company to
consider alternatives. 
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