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RealTime IT News

Today's Deals: CDNow Bailed Out

Alteon WebSystems + Pharsalia Technologies, Bertelsmann AG + CDNow, Chordiant + White Spider Software, Politics.com + Votenet









 Bertelsmann AG to acquire CDNow (CDNW)

 

   *  Amount:         $159 million

 

   *  Terms:            100% cash
 

   *  Premium:        n/a

 

   *  Industry:        E-tailers

 

   *  Scorecard:      C

 


    GUTERSLOH, Germany, July 20--Bertelsmann AG, an international media company, and CDNow , an online music destination, announced a definitive merger agreement under which Bertelsmann will acquire CDNow in an all-cash tender offer for $3.00 per share, or approximately $117 million, as well as approximately $42 million to pay off existing loans and to fund CDNow's ongoing operations until the close of the transaction. CDNow will become a wholly-owned subsidiary of Bertelsmann e-Commerce Group (BeCG), becoming Bertelsmann's primary engine for all music commerce across online, and will continue to operate under the CDNOW brand. Read analysis of this deal in Kelly Black's DealTracker.

     

 

 Chordiant (CHRD) acquires White Spider Software