Onvia.com, Inc. (Nasdaq: ONVI) rose 1 37/64 to 10 1/64 Monday after the Seattle, Washington-based B2B exchange said it would acquire Zanova, Inc. for common stock worth about $21 million.
Onvia said it would issue 2.54 million common shares to buy the Scottsdale, Arizona-based Zanova, which makes software that allows small businesses to build commerce-enabled Web sites.
Onvia said it plans to offer the new services through its alliances with small business groups, chambers of commerce and business partners. A recent study found that small businesses are spending more on online purchases, but many are wary of launching their own sites because they cannot be sure of finding buyers, Onvia said.
The new service, the company added, will give small businesses immediate access to a large number of customers.
Zanova’s service is fee-based, so Onvia will generate revenue every month. The acquisition should immediately start adding to earnings and “enhance gross margins,” the company said.