Vitria announced that the company has entered into a definitive agreement to acquire XMLSolutions Corporation. Vitria believes that there is a substantial market opportunity for EDI/XML integration. Given the complexity and cost of EDI software, most companies only use EDI to communicate with the top 15-20% of their trading partners. The remaining 80-85% of trading partners need a simpler, less expensive solution that leverages the emerging XML standard for information exchange over the Internet. The total purchase price for the transaction will be approximately $15 million, of which $7 million will be paid at the closing in cash to preferred shareholders, and $8 million will be used to retire short-term debt and other liabilities of XMLSolutions. The closing of the acquisition is subject to the approval of the shareholders of XMLSolutions, as well as the satisfaction of certain customary closing conditions. Vitria will account for the acquisition as a purchase and expects to complete the transaction in early April. www.xmls.com, www.vitria.com
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