The Big Get Bigger

Commerce One to acquire Exterprise

Pleasanton, CA  March 21, 2001  Commerce One has announced it has reached a definitive agreement to acquire Exterprise, a provider of software solutions for building and managing collaborative business networks. With the merger, Commerce One hopes to allow its customers and other software vendors to develop and deploy e-marketplace-based applications for both public and private e-marketplaces. 

Exterprise provides key capabilities to e-marketplace development, including an e-marketplace user interface that brings together disparate applications within a common look and feel; a business process engine to power complex, collaborative workflows at the e-marketplace; application components for supplier management, collaboration and business intelligence; and a development environment that makes it possible for e-marketplace operators, systems integrators and software vendors to develop applications that link business processes between multiple trading partners.

"Exterprise enables a whole new type of application, based at the e-marketplace, that powers inter-company processes and offers new levels of collaboration between multiple trading partners," said Mark Hoffman, chairman and CEO, Commerce One. "Our customers tell us that collaborative e-marketplace applications designed for specific companies, industries or regions will drive the next wave of e-marketplace adoption. We believe this acquisition will give us the ability to extend our leadership of the e-marketplace category."

"Public and private e-marketplaces are rapidly evolving from simple exchange platforms to rich business environments that power all types of inter-company and inter-organizational activities," said Manoj Saxena, president and CEO of Exterprise. "This evolution requires a new breed of e-marketplace applications designed from the ground up to enable and coordinate the interchange between companies at e-marketplaces."

The acquisition is structured as a stock-for-stock exchange and will be accounted for as a purchase transaction. Commerce One expects to exchange no more than 7.5 million shares of its common stock for all outstanding shares of Exterprise. The acquisition is subject to Exterprise stockholder approval and customary regulatory approvals. Based upon the closing price of Commerce One common stock on March 19, 2001, the exchange value would be no more than $78 million. Commerce One expects to complete the acquisition of Exterprise in the second quarter of 2001.

Pending the closing of the transaction, Commerce One expects to offer Exterprise e-marketplace capabilities in the second half of 2001. Complete integration of the Exterprise development platform into MarketSite Operating Environment is currently scheduled for the first quarter of 2002.