Stock Watch: Critical Path Plunges on Acquisition Plan

Critical Path, Inc. (Nasdaq: CPTH) fell 9 to 56 Wednesday after the company said it signed a definitive agreement to buy PeerLogic Inc., a privately held e-business software provider.

Critical Path said it will issue 6.4 million common shares to buy PeerLogic, and will assume all outstanding options. The deal is set to close in the third quarter.

The San Francisco, California-based provider of e-mail and other Internet messaging services said the acquisition will not affect its goal of attaining profitability in the fourth quarter. According to the company, the deal should boost earnings and revenue in 2001.

PeerLogic is also based in San Francisco.