Today’s Deals: CDNow Bailed Out

  
* 
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.
• 
  
•  

  
* 
Amount:         $8.1
million

  
* 
Terms:           
476,525 shares

  
* 
Premium:        n/a

  
* 
Industry:        Performance
software

  
* 
Scorecard:      B-

• 
  
• 
  CUPERTINO, July 20–Chordiant Software
  announced it has acquired New Hampshire-based White Spider Software,
  a specialist in Internet knowledge management and next generation XML-based
  software applications. White
  Spider’s technology and expertise will extend Chordiant’s multi-channel offering to
  include intelligent, automated email response capabilities and will be
  integrated with Chordiant’s eCRM solution by the fourth quarter of 2000.
  Chordiant acquired privately-held White Spider in a stock-for-stock
  purchase, where 476,515 shares of common stock were exchanged for all
  outstanding White Spider shares and assumed stock options.
• 
  
•  

  
* 
Amount:         $221
million

  
* 
Terms:           
100% stock

; 
* 
Premium:        n/a

  
* 
Industry:       
Speed/Bandwidth

  
* 
Scorecard:      B+

• 
  
• 
  SAN JOSE, July 20–To further address the rapid convergence of Web
  switching and Web computing, Alteon WebSystems
  announced that it has completed the acquisition of privately-held
  Pharsalia Technologies, an innovator of new content delivery
  products, for approximately $221 million in a stock-for-stock exchange.
  Pharsalia stockholders will exchange all of their common stock and options
  for common stock and options of Alteon.
• 
  
•  

  
* 
Amount:        
Undisclosed

  
* 
Terms:           
100% stock

  
* 
Premium:        n/a

  
* 
Industry:       
Content/Communities

  
* 
Scorecard:      C

• 
  
• 
  TEMPE, Ariz., July 20–Politics.com, a
  political Web site, announced it has agreed to purchase the Voten
• et
  division of Netivation.comin an all stock
  transaction. Votenet is a provider of
  Internet products and services to public policy and political
  organizations. Following the closing, Politics.com will be called Votenet
  Solutions, Inc. The deal calls for Netivation to end up owning
  approximately 80% of Politics.com.
• 
  
•