Verity Inc. and Inktomi Corp. jointly announced that they have entered into an agreement under which Verity will purchase Inktomi’s enterprise search software business.
Under the terms of the deal, Verity, a provider of infrastructure software that powers corporate intranets and e-commerce sites as well as OEM technology used in more than 250 e-business applications, will acquire from Inktomi, a provider of Web search and enterprise information retrieval solutions, the assets relating to Inktomi’s enterprise search software business, which includes basic search, categorization and content refinement capabilities, as well as its XML technology assets. Verity will pay a purchase price of $25 million in cash and will also assume Inktomi’s obligations under certain existing enterprise search business contracts, including customer support obligations. In addition, Verity intends to offer employment to selected development, sales and marketing, and support personnel from Inktomi’s enterprise search business unit. The companies currently anticipate closing the transaction in the next 30 to 60 days, subject to the satisfaction of customary closing conditions.
Verity anticipates the transaction will be accretive to earnings per share within the first six months following closing. Under the terms of the parties’ agreement, Verity will gain access to Inktomi’s customer base of 2,500 companies worldwide, significantly broadening Verity’s installed base of enterprise customers.
Inktomi Corp. will focus exclusively on its Web search business, leveraging its proven leadership in OEM Web search and paid inclusion services to capture a greater share of the growing Internet search market. With the sale of the enterprise search business, Inktomi plans to bolster its presence in Web search and concentrate efforts on opportunities in this growing market.
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