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i2 Partners with webMethods

E-business applications company i2 Technologies Inc. , which just last week agreed to acquire RightWorks Corp. in a $114 million deal, today did a partner pact with webMethods to further integrate their technologies.

As part of the deal, Fairfax, Va.-based webMethods issued a warrant to Dallas-based i2 under which i2 has the right to purchase up to 750,000 shares of webMethods common stock for $40 a share, according to published reports. webMethods was trading at about $26 in the early going today. i2 was down 87 cents at $18.62.

i2 will pay about $10 million for the initial licensing of the software, with a future revenue-sharing agreement that could generate $100 million in the next four years, according to published reports.

Both companies said they will dedicate resources to create a specific unit focused on product development. i2 is currently delivering solutions leveraging webMethods' integration capabilities and plans to have solutions incorporating webMethods' integration platform by the third quarter of 2001.

Joint sales and marketing plans are also being developed, the companies said.

The deal, reportedly for four years, broadens an earlier agreement to co-market i2 TradeMatrix Network Services and i2 TradeMatrix Solutions integrated with webMethods integration solutions. In the expanded partnership, i2 will use webMethods' integration platform as a core offering within the i2 TradeMatrix Network

webMethods will be i2's preferred vendor for integration of i2 TradeMatrix Solutions with enterprise and legacy applications. In addition, webMethods will promote and market i2 TradeMatrix Network Services through webMethods' B2B.com.

i2 said it would use webMethods' common integration platform to provide an open, standards-based infrastructure for its TradeMatrix Solutions. i2 will continue to support TradeMatrix API and provide additional support for cXML, OAG, RosettaNet, EDI, xCBL, and other established and emerging Internet collaboration standards.

"The webMethods integration platform is already in place at more than 500 industry leading companies and this partnership takes webMethods one step closer to becoming the ubiquitous platform for integration," said Phillip Merrick, chairman and CEO of webMethods.