Vignette Corporation announced that it has signed a definitive agreement to acquire Diffusion Inc., The acquisition adds an important component in broadening the capability of Vignette’s StoryServer technology by enabling companies to exchange information with their customers through any preferred media, including Web, e-mail, fax, telephone and pager. The result is closed-loop communications between companies and their customers leading to increased customer satisfaction and improved returns on companies’ online investments. Vignette will acquire 100 percent of the outstanding stock and assume all stock options of Diffusion in exchange for approximately 400,000 shares of Vignette common stock. Vignette will account for the transaction using purchase accounting and expects to close the acquisition by June 30, 1999, subject to approval by the shareholders of Diffusion and other customary closing conditions. Vignette expects to incur one-time acquisition costs and integration related charges associated with the transaction which include costs associated with product integration, cross training, and other merger related costs. Additionally, Vignette anticipates a portion of the purchase price will be allocated to In Process Research and Development and expensed upon the consummation of the transaction. Diffusion technology will enable Vignette customers to manage the distribution and delivery of personalized information across any delivery channel, including the Web, e-mail, fax, pager and telephone, regardless of the channel the communication originates from or is routed through. The result is multi-channel information delivery solutions for automating personalized, closed-loop interaction between an enterprise and its client. For example, through this integration, a financial services company could immediately and proactively alert a client, via the client’s preferred method, when trading events, such as confirmation of block trades, buy/sell decisions, IPO filings and stock price changes. If the customer cannot be reached through the primary channel, the communication will be escalated to the next level, until the customer receives the message. The company then receives confirmation of delivery, an additional benefit in mission-critical business situations.