Active Software, Inc. (Nasdaq: ASWX) was up 2 1/8 to 35 1/8 early Monday, following the company’s announcement that it will be acquired by WebMethods, Inc. (Nasdaq: WEBM) for stock valued at $1.3 billion, based on Friday’s closing prices.
Active Software shareholders will receive 0.527 of a WebMethods share for each of their shares, with about 13.6 million WebMethods shares exchanged. The companies said they expect to complete the transaction in the third quarter, following shareholder and government approval.
The companies said the combination will have a customer base of more than 350 blue-chip companies worldwide.
WebMethods Chairman, President and Chief Executive Officer Phillip Merrick will continue in that capacity, with Active Software CEO Jim Green becoming chief technology officer and vice president of product development. Other Active Software managers will also join WebMethods, the companies said. Active Software’s Santa Clara, California headquarters will become WebMethods’ West Coast base.
The Fairfax, Virginia-based WebMethods was down 11 at 76.