LOS ANGELES: Sybase Inc. said on Tuesday that it will buy New Era of
Networks, Inc. (Neon) for some $373 million in stock, in order extend its
software offerings from database applications to other areas of e-commerce.
Denver, Colo.-based Neon offers software that allows companies to integrate
software applications that manage client information, supply chains and other
areas of business operations from a variety of vendors.
By using Neon software, businesses combine individual software offerings from
companies such as Siebel Systems, SAP and other vendors, an undertaking that
otherwise requires outside consultants and customized programming.
Under the terms of the deal, which is still subject to regulatory and
shareholder approval, the Neon common stock would be converted into 0.3878
shares of Sybase common stock.
Sybase stock fell about 6 per cent in after-hours trade on the Island system
to $23 after the merger announcement. Neon shares were also off some 3 per cent
after hours to $6.75. Sybase said that it would account for the merger as a
purchase on its balance sheet and said the transaction, which it expects to
complete in the second quarter of the current fiscal year, would be assertive to
earnings in fiscal 2002.
The company will set up a new division, integrating the merged company's
e-commerce operations under Neon chief executive Rick Adam. That goal sets the
merged company up as a potential competitor to Oracle Corp. which is marketing
its own suite of e-commerce software that allows businesses to combine sales,
financial and other operations on a single platform.
(C) Reuters Limited 2001.