Brokat Closes Acquisition of GemStone.
Platform to Result in E-Business Solutions Based on J2EE(TM) Technology
STUTTGART, Germany, Aug. 31 /PRNewswire/ --
Brokat AG (Frankfurt Neuer Markt: BRJ), the leading provider of software platforms for e-business solutions, has concluded the acquisition of Beaverton, OR-based GemStone Systems, Inc., a leading provider of Java-based software for business-to- business transactions. GemStone will operate as a wholly owned subsidiary of Brokat AG. Under the terms of the acquisition announced on June 20, Brokat acquired a 100 percent interest in privately held GemStone in exchange for 2.65 million Brokat shares that were issued from previously authorized capital. The transaction is valued at approximately DM 582 million (US$283 million).
Brokat said that the acquisition of Blaze Software, Inc. (Nasdaq: BLZE) also announced on June 20, is expected to close shortly.
The Brokat shares issued in connection with the transaction are tradable on the Neuer Markt in Frankfurt, the German exchange for high growth companies. The majority of these shares can not be traded until the six-month lock-up period expires.
GemStone will continue to distribute its products and services under their existing brand name. The company posted revenues of $23.6 million in 1999 and recorded an after-tax loss of $4.6 million. This corresponds to a 12 percent increase in revenues and an 84 percent increase in Java revenues over the previous year. GemStone, with offices throughout the United States and Europe, has 170 employees.
GemStone's core product, GemStone/J, is a leading EJB (Enterprise Java Beans) application server for business-critical e-commerce processes. GemStone/J enables the implementation of e-business solutions based on J2EE (Java 2 Enterprise Edition). In the future, Brokat's e-business platform, Twister(TM), will also support the J2EE industry standard, making entry into Java technology simpler and more cost-effective.
"This merger with Brokat is an extraordinary opportunity for GemStone and our customers," said Ken Irinaga, president and chief executive officer of GemStone. "Brokat is a very successful company with a strong and visionary management team. GemStone is an ideal complement to Brokat, and our customers and employees will greatly benefit from the merging of our two companies," Irinaga added.
"Both our customers and our shareholders will profit from the integration of GemStone technology into our e-services platform Twister(TM)," said Stefan Rover, chief executive officer of Brokat. "By uniting the core competencies of both companies, we expect to save significant costs that Brokat would otherwise have had to incur to develop the components separately."
Brokat is among the world's leading providers of software for e-business solutions. In the Internet banking market segment, the company is the world market leader. Its key product is the modular e-services platform Twister(TM). This multi-industry software integrates existing IT systems and applications in companies and securely links to various electronic channels, such as the Internet and mobile communications. Twister(TM) provides comprehensive functionalities for customer relationship management and enterprise application integration. More than 2000 customers use Twister(TM) solutions, including Allianz, Axa, Deutsche Bank 24, ABN Amro, Cable & Wireless, Consors, DBS-Bank Singapore, debitel, Swiss Post, SE-Banken, Toronto Dominion Bank and Union Bank of California. Brokat was founded in 1994 and currently employs more than 800 employees in 16 countries. In calendar year 1999 the Company posted revenues of DM 94 million. Brokat AG has its headquarters in Stuttgart, Germany. Information about Brokat and its products can also be found on the Internet at http://www.brokat.com.
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|Date:||Aug 31, 2000|
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