E.Piphany to Buy RightPoint for $393 Mln SAN MATEO, Calif. (Reuters) - E.piphany Inc (Nasdaq:EPNY - news)., a supplier of Internet customer management software, Tuesday said it would buy RightPoint Corp., which helps coordinate customer communications, in a $393 million stock swap. E.piphany said it will issue about 3.5 million shares of its common stock to the shareholders of privately held RightPoint, or about 10.5 percent of the combined company on a fully diluted basis. E.piphany shares closed Monday at 112-1/2 on Nasdaq. Roger Siboni, chairman and chief executive of E.piphany, said the acquisition would have a neutral impact on the company's earnings. ``We see no overall dilution for the year 2000,'' he said in a phone interview. Analysts have forecasted the company will lose around $1.29 per share in the year 2000, compared with a predicted loss of $1.18 per share for the full 1999 year, according to First Call, which surveys broker earnings estimates. In a statement, E.piphany said the combination of the two companies' technologies would give companies a ``single view'' of customers, however they contact a company, whether via the telephone, the Internet or in person at stores. Such systems help companies analyze customer buying patterns. The two San Mateo, Calif.-based companies' customers include such top marketers as American Express Co (NYSE:AXP - news)., Charles Schwab Corp (NYSE:SCH - news)., GTE Corp (NYSE:GTE - news)., Procter & Gamble Co., CBS SportsLine and Hewlett-Packard Co (NYSE:HWP - news). . RightPoint tracks the surfing habits of Internet users with technologies such as self-learning analytics, filtering and real-time customer profiling to deliver targeted product recommendations, loyalty offers, and other custom content to a Web site's visitors. The system is also designed to create personalized e-mail marketing campaigns and to coordinate contacts through telephone-based marketing. The definitive deal will be accounted for as a purchase. The acquisition is subject to customary closing conditions, including the approval of RightPoint's shareholders and regulatory approvals. Upon completing the transaction, E.piphany expects that it will have almost 275 employees.
Copyright © 1999 KDnuggets