Peregrine Systems, the provider of infrastructure management and e-procurement software represented locally by CCH Enterprise Solutions, and Harbinger Corporation, the provider of B2B e-commerce delivery, have announced a definitive merger agreement worth more than $2,1bn. The deal combines the strengths of two companies with track records for integrating e-business processes for infrastructure management, e-procurement and e-marketplaces (portals), and rapidly deploying e-business solutions.
The combined company will enable businesses to access multiple e-marketplaces for requisitioning, acquiring, managing and disposing of critical assets, facilities and other operating resources. With 44 000 customers and e-Marketplaces already processing more than 1 million transactions daily, the company will be the largest provider of end-to-end e-business.
In terms of the agreement, Peregrine will acquire the outstanding stock and stock options of Harbinger at an exchange ratio of 0,75 share of Peregrine common stock for each share of Harbinger common stock. The stock-for-stock exchange represents a deal valued at $2,1 billion based on the closing price of Peregrine shares on April 5, 2000. Peregrine expects to issue 36 million shares in exchange for all the outstanding equity securities of Harbinger. The transaction is expected to be accounted for by the purchase method and treated as a tax-free reorganisation. The definitive agreement has been approved by the boards of directors of both companies and is subject to approval by their respective shareholders, regulatory approvals and customary closing conditions.
"The combination of Peregrine and Harbinger reshapes the competitive landscape for end-to-end e-business solutions," says Allen Lewis, product management executive at CCH Enterprise Solutions. "As a single provider, Peregrine will create, operate and link e-business networks, e-catalogues and online marketplaces, while managing the full lifecycle and infrastructure of e-business. Harbinger is the most advanced and open B2B e-commerce delivery organisation in the world, which makes it a logical addition to our infrastructure management software solutions. The combination is powerful and creates the clear market leader for e-business solutions delivery," added Gardner.
The merger will combine Peregrine`s e-procurement, asset and infrastructure management, and employee self-service solutions with Harbinger`s harbinger.net e-marketplace enablement capabilities. Enabling services via the e-marketplace include catalogue content management, e-commerce data transformation, integration and transaction processing, and e-commerce application service provider (ASP) offerings.
The merger will create a company that delivers comprehensive capabilities to implement the complete lifecycle of e-business along with unparalleled worldwide deployment services that help businesses rapidly deploy broad-based B2B initiatives. Integrated capabilities include:
Large enterprises will now be able to purchase a full suite of electronic trading and procurement solutions from a single global supplier, including integration to their asset management and other business systems. This combination will also present a compelling value proposition for small-to-medium size enterprises (SMEs) who will benefit through the availability of full lifecycle, integrated e-procurement and asset management capabilities offered via an ASP solution hosted on harbinger.net, the industry`s leading e-Marketplace enablement portal.
"e-Business is all about managing and connecting the internal processes of e-procurement and infrastructure management to multiple external marketplaces, so buyers and sellers can rely on their e-business technology to be more effective," says James M Travers, president and CEO of Harbinger.
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Harbinger Corporation
Harbinger Corporation is a leading worldwide provider of business-to-business e-commerce software, services and solutions. The company maximises its customers` business potential with comprehensive, scalable e-commerce solutions that help streamline operations, increase profitability and build electronic trading communities. Harbinger`s objective is to serve more customers using Internet Protocols (IP) than any other provider and to establish harbinger.net as the preferred virtual e-commerce centre for information and mission-critical, business-to-business e-commerce transactions. Headquartered in Atlanta, Georgia, Harbinger provides worldwide support to its customer community from multiple US and overseas operations facilities. For more corporate information, go to www.harbinger.com.
Peregrine Systems
Peregrine Systems is the leading provider of employee self service and e-infrastructure management solutions that help ensure the reliability, productivity and cost-effectiveness of organisational infrastructure. Peregrine provides infrastructure management solutions to organisations to help them manage the availability and cost of their technology, facilities and transportation infrastructure.