Buyer pledges "to support, extend and enhance" Covisint's solutions for the auto industry
Detroit — February 9, 2004 — Technology company Compuware Corporation has agreed to acquire the products and technology of erstwhile automotive industry e-marketplace Covisint, and the buyer is pledging to support and develop Covisint's solutions.
Compuware and Covisint expect to close the transaction within 30 days, subject to closing contingencies.
The buyout of Covisint follows closely on the announcement at the end of last year that online auctions specialist FreeMarkets was buying Covisint's sourcing and services assets. (See related article.)
Covisint has more than 135,000 users in more than 96 countries, according to Compuware's statement on the deal. Compuware said it would retain the majority of Covisint's staff and expects to move them to Compuware's Detroit headquarters over the next several months.
Covisint, which had begun as an auto industry-sponsored e-marketplace during the last gasp of the dot.com bubble in 2000, has more recently turned to providing connectivity services to link industry original equipment manufacturers (OEMs) and their suppliers and trading partners. In a statement, Compuware said it planned "to support, extend and enhance" Covisint's solutions.
"Combining Compuware's productivity solutions and skilled professionals with Covisint's messaging, portal and Web services offerings will present a compelling package that can significantly extend cost-savings for OEMs and suppliers," said Compuware Chairman and CEO Peter Karmanos, Jr.
Karmanos added that Compuware's financial stability, global presence and mature services and development organizations would help enhance the value that Covisint is able to deliver to the automotive industry. "This is an outstanding opportunity to gain synergy from extended relationships and enhanced technology," he said.
"Now that Covisint is running mission-critical processes for the OEMs and large tier one suppliers, they would like us to rapidly expand our capabilities," said Bob Paul, Covisint president and CEO. "Under the stewardship of Compuware, we will be able to globally scale our technology offering. Compuware was a logical choice for us due to its strong local presence and similar commitment to the automotive industry."
Compuware expects that this purchase will add one to two cents per share to Compuware's earnings for its next fiscal year ending March 31, 2005.
Detroit — February 9, 2004 — Technology company Compuware Corporation has agreed to acquire the products and technology of erstwhile automotive industry e-marketplace Covisint, and the buyer is pledging to support and develop Covisint's solutions.
Compuware and Covisint expect to close the transaction within 30 days, subject to closing contingencies.
The buyout of Covisint follows closely on the announcement at the end of last year that online auctions specialist FreeMarkets was buying Covisint's sourcing and services assets. (See related article.)
Covisint has more than 135,000 users in more than 96 countries, according to Compuware's statement on the deal. Compuware said it would retain the majority of Covisint's staff and expects to move them to Compuware's Detroit headquarters over the next several months.
Covisint, which had begun as an auto industry-sponsored e-marketplace during the last gasp of the dot.com bubble in 2000, has more recently turned to providing connectivity services to link industry original equipment manufacturers (OEMs) and their suppliers and trading partners. In a statement, Compuware said it planned "to support, extend and enhance" Covisint's solutions.
"Combining Compuware's productivity solutions and skilled professionals with Covisint's messaging, portal and Web services offerings will present a compelling package that can significantly extend cost-savings for OEMs and suppliers," said Compuware Chairman and CEO Peter Karmanos, Jr.
Karmanos added that Compuware's financial stability, global presence and mature services and development organizations would help enhance the value that Covisint is able to deliver to the automotive industry. "This is an outstanding opportunity to gain synergy from extended relationships and enhanced technology," he said.
"Now that Covisint is running mission-critical processes for the OEMs and large tier one suppliers, they would like us to rapidly expand our capabilities," said Bob Paul, Covisint president and CEO. "Under the stewardship of Compuware, we will be able to globally scale our technology offering. Compuware was a logical choice for us due to its strong local presence and similar commitment to the automotive industry."
Compuware expects that this purchase will add one to two cents per share to Compuware's earnings for its next fiscal year ending March 31, 2005.
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