The leading provider of global business-to-business electronic commerce
solutions will issue approximately 785,000 shares of unregistered common
stock and approximately $4.5 million in cash to the CommerceBid.com
CommerceBid.com is a major developer of auction and reverse auction service
solutions. Commerce One (CMRC)
hopes to accelerate the adoption of auction and reverse auction services
by businesses worldwide with this acquisition.
The addition of auction and reverse auction capability to Commerce One
MarketSite will deliver strategic benefits to both buyers and suppliers.
Reverse auction services enable buyers to identify suppliers of new goods
and services, or find more advantageous prices for currently purchased
items, and at the same time achieve dramatic reductions in purchasing costs.
“Auction services will soon become a core requirement for global trade, and
it is therefore critical that we offer
trading communities the very best auction technology and expertise as a
core competence of Commerce One,” said Mark Hoffman, president and chief
executive officer of Commerce One.
Industry analysts project auction sales to grow exponentially by 2002.
According to Forrester Research, business-to-business auction sales will
increase from $8.7 billion in 1998 to $52 billion in 2002.