Three-way Merger Signals E-biz Contraction
Rival e-business software firms SynQuest
The deal, which signals a trend towards contraction in the e-business
services space, first calls for SynQuest to acquire Viewlocitys supply
chain event management businesses. After that deal is completed, SynQuest
would absorb Tilion, a transaction that brings about $13 million in cash to
the table.
SynQuest, which has seen its stock value nosedive in recent months, will
remain as the surviving legal entity. Viewlocity chief executive officer
Jeffrey Simpson will serve as chairman and chief executive officer of the
merged company.
In addition to the $13 million cash that comes with the Tilion transaction,
the
SynQuest has also scored an equity funding deal with venture capital firms
Battery Ventures and Warburg Pincus. SynQuest said it would issue between
$14.5 million and $17 million of new shares of stock at $2.50 per share, in
exchange for additional cash investments by existing shareholders.
SynQuest client roster includes the likes of Ford Motor Company, Nissan
North America, HON Industries, Simmons Company, Penske Logistics and Honda
Express and once the merger clears, it would add the likes of Dell, DHL and
DSC Logistics, which are among Viewlocitys customers.
Following the merger, the company plans to sell and service all existing
products and will initially focus on the automotive, consumer durables,
industrial, high tech, printed packaging, retail/CPG and 3PL markets.
, Viewlocity and
Tilion on Monday announced a complicated three-way merger deal that includes
up to $30 million in new funding to the combined entity.