eXcelon, C-bridge Merge

Boston-based Internet consulting firm C-bridge is merging with eXcelon, a Burlington-Mass.-based developer of XML-based platforms and tools, in a move that will create a new company valued at more than $100 million, with cash reserves of about $50 million.

C-bridge Internet Solutions Inc. is the originator of its iSolutions approach to e-enterprise consulting and services. Its stock was up 29 percent on the news, trading 68 cents higher at $3.02 in mid-morning market action.

eXcelon Corp. is a provider of an XML-based platform for self-service and collaborative applications. Its stock was down 14 cents on the news in mid-morning, trading at $2.59 a share.

The agreement represents a merger of equals, the companies said. Each outstanding share of C-bridge common stock will be converted into the right to receive 1.2517 shares of eXcelon common stock. The eXcelon/C-bridge shareholders then will each own 50 percent of the combined company on a fully diluted basis.

The new company will be called eXcelon Corp.

eXcelon Chairman and CEO Bob Goldman will serve as chairman of the board and Lacey Brandt, eXcelon's chief financial officer will serve as CFO for the new company. Joe Bellini, C-bridge chairman and CEO, will assume the role of chief executive officer.

"Our two companies align perfectly to provide XML-based solutions that enable the integration of enterprise value chains, a market estimated to be as large as $250 billion over the next four years " said Bellini. "eXcelon's XML technology provides a strong foundation upon which companies can base their e-business architecture (and) coupled with our expertise in vertical market consulting and diagnostic services, (the merger) will enable us to deliver solutions that address the business needs of key vertical industries

The new company will have more than 1,500 customers and offices in the U.S., UK, Germany, Netherlands, Scandinavia, Japan, Australia, Hong Kong, and Singapore.

Object Design, a division of eXcelon that serves the object data management market, will continue to be managed as a separate division of the combined company.