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WebTrends Corp. (Nasdaq: WEBT) was down 2.375 at 30.50 early Wednesday after the company agreed to be acquired by NetIQ Corp. (Nasdaq: NTIQ) for stock worth US$36 per share, or about $1 billion.
Under the agreement, which was approved by both companies' boards, WebTrends shareholders will receive 0.480 NetIQ common shares for each of their WebTrends shares. NetIQ shareholders will own about 76 percent of the combined company, and WebTrends shareholders will hold 24 percent.
The acquisition will give NetIQ a market capitalization of more than $4 billion, pro forma revenue of about $160 million for calendar 2000, more than 52,000 customers, and about 1,000 employees.
NetIQ was down 9.75 at 62.25.
WebTrends chief executive officer Eli Shapira will become chief strategy officer of NetIQ after the combination, and will join the company's board of directors. The deal, he said, "will result in greatly enhanced offerings for our more than 52,000 collective customers, increased business opportunities with partners, significant value creation for our shareholders and compelling opportunities for all our employees."
Other WebTrends officials will also stay on after the merger. President and chief technology officer Glen Boyd will become chief information officer, and chief operating officer Dan Meub will be senior vice president of WebTrends products.
Corporate headquarters will remain in San Jose, California, where NetIQ is based, with "significant operations" in Portland Oregon, which is home to WebTrends. The companies expect to complete the transaction late in the first quarter or early in the second.
Holders of about 30 percent of
WebTrends' outstanding shares have agreed to vote in favor of the merger,
the companies said.
