European Contract Lifts BEA Systems

Business Europe provides its customers, European small and medium-sized businesses, with such services as news analysis and online marketplaces. The company has a potential market of 18 million businesses.

Financial terms of the agreement were not disclosed.

"BEA technology is important in allowing us to deploy our systems and applications quickly and effectively, exceeding anything the competition could have delivered," said Business Europe chief technology officer Doug Winter.

Credit Suisse First Boston reportedly reiterated a buy recommendation on BEA shares following the news, putting a 12-month price target of 85 on the stock.

BEA, based in San Jose, California, last month reported third-quarter results that beat analysts' expectations. Chairman and chief executive officer Bill Coleman attributed the improvement to growth in license fees as more companies convert their operations to the Internet.

During the quarter, the company said it signed agreements with companies including Aetna, Ameritrade, AOL/Time Warner, Cisco Systems, and Visa, and expanded existing relationships with such vendors as Ariba, Open Market and Genuity.

BEA shares are also doing better than those of many technology companies. The stock reached a 52-week high of 89 1/2 in October, and is trading well above its year low of 25 1/2, seen in April.