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Commerce One Is Mobbed

San Francisco-based MobShop scored a coup as Commerce One Inc. (Nasdaq:CMRC) signed a pact making the demand-aggregation technology company a business service provider (BSP) for Commerce One e-marketplaces.

The deal allows MobShop to offer its real-time demand aggregation technology to current and future Commerce One-powered e-marketplace customers. Financial arrangements were not disclosed.

MobShop's software, offered on an installed or hosted basis, pools orders from multiple buyers into high-volume transactions, creating economic incentives for both buyers and suppliers.

The company's DemandSuite Exchange application set offers demand aggregation for a variety of marketplace and e-procurement platforms. It includes real-time order aggregation and coordination, as well as volume-based dynamic pricing designed to encourage and reward larger orders.

MobShop said it plans to offer demand aggregation technology to Commerce One e-marketplace clients via the latter's Global Trading Web, a B2B trading community, with members across 54 countries on six continents.

Customers selecting the MobShop solution will be able to integrate the technology into the Commerce One MarketSite Operating Environment, the foundation of every Commerce One e-marketplace.

"We believe MobShop's real-time demand aggregation technology is an important tool for improving liquidity and economic value in e-marketplaces," said Thomas McCleary, senior director of business development for Commerce One.

MobShop, a privately held, venture-backed company, was founded as Accompany Inc. in October 1998 and changed its name in March 2000.

Commerce One stock was up 34 cents in mid-day trading to $9.56. Just yesterday the company signed a major strategic alliance in which Microsoft will loan $25 million to Pleasanton, Calif.-based Commerce One to enlist the services of the company.

Commerce One will use the cash to develop an engineering and sales department that is familiar with Microsoft's platform. And it will also sink money into allowing businesses using Microsoft's software to integrate with online exchanges under its tutelage.