Scoot.com announced that it has completed the acquisition of software development
company Diva Solutions for £1.18 million (US$1.86 million) in cash.
The purchase of Diva brings a range of Internet technology and
expertise in trading systems, real-time market data, settlement,
and propensity modelling. Diva is said to have “nine high calibre
development experts” in these areas.
Earlier this year on April 14, Scoot announced the creation of new company Scoot Technology. During the intervening period,
teams from Scoot and Diva have been integrated, with the aim of
eventually making Scoot Technology responsible for all product
development within the group.
The terms of the agreement to purchase Diva are unusual in that
the initial payment is only £1,200. The remaining £1,180,000
will be paid in installments over three years if Diva employees
successfully deliver the Scoot e-commerce Framework by the end of the year 2000.
Scoot says it will pay a first installment of 15 percent, a second of 30 percent, and a third of 55 percent. It has also set up a “Phantom Share Option Scheme” under which employees will be awarded 5 million phantom shares at a notional price of 31p each, exercisable 3 years after the grant date if delivery is successful.