BravoSolution to acquire Verticalnet

MILAN: BravoSolution, provider of supply management solutions in Europe, today announced to acquire Verticalnet Inc, provider of on-demand supply management solutions, in a transaction valued at $15.2 million.

The acquisition will allow BravoSolution to expand its geographic presence in the North American market, broaden its technology offering and secure its position as one of the leading world providers of eSourcing solutions, BravoSolution said in a statement.

According to the agreement, the transaction will be consummated through a merger of BravoSolutions USA Inc, a newly formed acquisition vehicle, into Verticalnet. BravoSolution USA Inc will acquire all the outstanding shares of Verticalnet common stock at a price of $2.56 per share of common stock and following the merger, Verticalnet will change its name to BravoSolution USA Inc.

The proposed transaction is subject to approval by Verticalnet's shareholders, and other customary closing conditions.

The closing of this financing will be completed on 31 October 2007. Verticalnet intends to use the proceeds from the share issuance for immediate working capital needs.

"The combination with BravoSolution provides value to our shareholders, continuity to our customers, will result in the repayment of all of our debt outstanding and will provide for new and enhanced opportunities for our employees" said Nathanael V. Lentz, Verticalnet president and CEO. "Our products and services are complementary, and Verticalnet and BravoSolution will move forward with a commitment to support new and existing customers of Verticalnet's current software solutions."

Verticalnet and BravoSolution anticipate that the transaction will close during the first quarter of 2008, subject to the approval by Verticalnet's shareholders and other customary closing conditions.

Verticalnet has 80 employees, offices in Pennsylvania, Maryland, Illinois, New York in the USA, Paris in France and Guildford in UK and 2006 revenues of $16.2 million.