July 27, 2005

Supply management software developer Verticalnet has acquired Digital Union Ltd., an English B2B provider of on-demand sourcing & procurement software and services. The transaction was initiated and accepted on Monday.

Verticalnet paid 4.5 million shares of common stock to Digital Union's shareholders in the transaction, which closed Friday.

That made the deal worth $2.97 million at Verticalnet's Friday closing price of 66 cents. Verticalnet also agreed to pay Digital Union's stockholders up to an additional 3.5 million Verticalnet shares based upon the company's success in reaching revenue milestones within a year of the transaction closing.

Digital Union initially will be operated as a Verticalnet company under the Digital Union brand. Its sales, marketing and administrative operations will be combined with existing Verticalnet operations in Europe. Both companies' customer-delivery operations will remain intact.

Source: Philadelphia Business Journal