DigitalThink, Inc. (Nasdaq: DTHK) rose 9 1/8 to 49 1/2 Wednesday after the company announced an alliance with Electronic Data Systems (NYSE: EDS) that includes a commitment from EDS to buy $100 million worth of DigitalThink’s e-learning products.
EDS also agreed to buy another $50 million worth of products from DigitalThink over the next five years, for use by EDS employees worldwide. EDS will earn warrants to purchase up to 4.5 percent of DigitalThink’s outstanding stock as it delivers new contracts and revenues to DigitalThink. The warrants will be fully exercisable at $29 a share.
EDS will team with the company on consulting and systems integration, and the two firms will work on mutual client projects, including creating client-specific “Web universities” and Internet-based training.