Today’s Deals: CDNow Bailed Out

 Bertelsmann AG to acquire CDNow
(CDNW)

  
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Amount:         $159
million

  
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Terms:           
100% cash

  
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Premium:        n/a

  
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Industry:        E-tailers

  
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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

  
* 
Amount:         $8.1
million

  
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Terms:           
476,525 shares

  
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Premium:        n/a

  
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Industry:        Performance
software

  
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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.




 

 Alteon WebSystems (ATON) to acquire Pharsalia
Technologies

  
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Amount:         $221
million

  
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Terms:           
100% stock

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Premium:        n/a

  
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Industry:       
Speed/Bandwidth

  
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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.




 

 Politics.com (POCO) to acquire Votenet from
Netivation.com (NTVN)

  
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Amount:        
Undisclosed

  
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Terms:           
100% stock

  
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Premium:        n/a

  
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Industry:       
Content/Communities

  
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Scorecard:      C

TEMPE, Ariz., July 20–Politics.com , a
political Web site, announced it has agreed to purchase the Voten

et
division of Netivation.com in 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.