I-shop webMethods, Inc. is acquiring IntelliFrame Corp., a wholly-owned subsidiary of Computer Network Technology Corp., in a cash and stock deal worth $31.1 million. The Fairfax, Va.-based webMethods will issue $22.5 million worth of new common stock and pay $8.8 million to complete the deal expected to close by March 31.
Through the transaction, webMethods will acquire IntelliFrame, certain technology and its Boston-based research and development team to broaden the scope of webMethods' integration solution. The R&D organization will develop for webMethods technology that combines advanced human interaction solutions with business process automation technology.
The companies hope this combined solution will move beyond traditional workflow to provide customers with highly personalized interfaces that integrate business processes that require human intervention, approval or other manual processing. These next-generation solutions will be incorporated into webMethods' common integration platform to enhance the company's business process automation capabilities.
"webMethods is quickly becoming the standard platform for integrating business processes throughout the organization and across the firewall," said Jim Green, chief technology officer and executive vice president of product development of webMethods. "Customers using webMethods solutions as the backbone for automating their business processes require an advanced offering that not only connects systems, but also addresses the human factor involved with integrating a global business. The acquisition of IntellilFrame brings to webMethods a highly focused and talented R&D organization that will extend and enhance our business process automation solutions to establish the next generation of integration solutions."
webMethods expects that substantially all of the purchase price will be recorded as an in process R&D charge during the current quarter. The closing of the transaction is subject to customary conditions, including the satisfactory completion of due diligence on IntelliFrame.
Founded in 1996, webMethods has offices across the U.S., Europe and Asia Pacific. With an emphasis on key vertical markets such as chemicals, financial services, high-tech manufacturing and telecommunications, webMethods has more than 500 customers worldwide from Global 2000 leaders such as Citibank, Dell, Eastman Chemical Company, Fidelity Investments, Grainger, Motorola and Starbucks to major B2B exchanges like ForestExpress, eHitex/Converge and PetroCosm.
webMethods' strategic partners include Ariba, Commerce One, Deloitte Consulting, EDS, i2 Technologies, J.D. Edwards, KPMG, Microsoft, Oracle Corp., SAP AG and Siebel.
Roy Mark is managing editor at dc.internet.com.
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