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Schade nur, dass nicht ueber die IPO... cheers, guuruh === ICG puts RightWorks on sale block: Is i2 the buyer? February 26, 2001 03:10 PM ET by Adam Feuerstein Business-to-business incubator Internet Capital Group (ICGE) is looking to sell RightWorks, and the leading suitor might be i2 Technologies (ITWO), according to rumors sweeping across Wall Street over the past week. Executives with i2 and ICG refuse to comment on the takeover talk, but i2 is up 12 percent today, to $33.25, in part because of the rumor. Shares were trading as high as 14 percent earlier in the day. ICG is up 13 percent, to $3.97. RightWorks CEO Mary Coleman also refused to comment, stating that the i2 takeover rumor is old news, and that her company`s performance is strong enough to stand on its own. Rumors abound RightWorks is a privately held Internet procurement software maker in the Ariba (ARBA) mold, but with far fewer customers and revenue. ICG, which owns 56 percent of the company, has been seeking a buyer for RightWorks for months, according to several sources that contradict Coleman`s assertions. An exact price is not known, but observers say RightWorks might fetch between $200 million and $500 million. That`s far less than the $1 billion-plus valuation placed on RightWorks when ICG made its investment a little less than one year ago. But ICG invested in RightWorks before the Nasdaq crash and the subsequent collapse of b-to-b stocks. Those factors, plus RightWorks` difficulty in turning solid technology into a revenue-generating customer base -- especially in the face of stiff competition from the likes of Ariba and Commerce One (CMRC) -- forced ICG to put RightWorks on the sale block instead of moving forward with an initial public offering, sources say. "RightWorks` execution could be characterized as disappointing to this point," says Bob Parker, a b-to-b analyst with AMR Research, who has heard the sale rumors. "The company has a very good product. They have the ICG investment and an experienced management team, but the company has not gotten the traction in the market that they would have hoped for." That`s why a sale of RightWorks to a stronger software company makes sense, says Pat Walravens, an analyst with Lehman Brothers. "RightWorks needs to be part of a broader [b-to-b software] solution," he says, acknowledging that he has no special insight into whether ICG is cooking up a deal or not. "In the heyday of b-to-b, it was OK to sell a point solution, but today, companies are looking for a broader software footprint, and that`s something RightWorks can`t deliver." I2`s popularity So, is a deal imminent between i2 Technologies and RightWorks? So far, market chatter is more prevalent than actual details, but a deal could make sense, according to several b-to-b observers. I2, of course, has become the belle of the b-to-b ball because it`s singing a song that would seem to cure many of the blues befalling large manufacturers these days. Its supply chain and e-business software allows companies to accurately forecast changes in demand or market conditions, then relay those changes to suppliers and customers. The ability to help companies reduce costs and boost their efficiency by communicating with business partners over the Net is the sweet spot in the b-to-b software market. Adding Internet procurement and marketplace software from RightWorks would only enhance i2`s position, giving it virtually all of the b-to-b software tools a customer could ever need, says Parker. And for soap opera fans out there, i2 could be eyeing RightWorks as a way to deliver a crippling blow to its "partner" Ariba. The two companies have been slinging arrows at each other for months, despite their participation in a b-to-b marketplace "Alliance" with IBM (IBM). But both companies, in recent weeks, have acknowledged that they now compete with each other, so i2 could use RightWorks to, once and for all, move solidly onto Ariba`s turf. Ariba acquired Agile Software last month do the same to i2, but the company`s stock has been hammered on fears that it has not made a strong enough move into the supply chain arena dominated by i2. Stealing Ariba`s thunder One of the more conspiratorial rumors floating out there is that vindictive i2 will announce its purchase of RightWorks later today or Tuesday, just in front of a big Ariba media event planned for Wednesday in New York City. While companies can`t generally time acquisition announcements to wound their enemies, the rumor illustrates just how much these two companies despise each other. And if these weren`t enough reasons for a deal, consider the fact that i2 and RightWorks once worked very closely together. In fact, i2 President Greg Brady once sat on RightWorks` board of directors. "From a procurment perspective, [a purchase of RightWorks] fills out nicely i2`s suite of b-to-b software," says Tim Klein, analyst with U.S. Bancorp Piper Jaffray. "It also puts them into direct competition with Ariba." There are, of course, reasons why such a deal between i2 and RightWorks doesn`t make sense. For starters, the two companies already overlap to some extent. I2 executives have also been fairly vocal in recent weeks about downplaying the value of indirect procurement software sold by companies like RightWorks. And the two companies may not reach agreement on price. There may also be other suitors vying for RightWorks` attention. The company recently announced a strategic alliance with Manugistics (MANU), a supply chain software rival to i2, that could lead to a deeper relationship. And then there`s PeopleSoft (PSFT), which has given strong indications that it wants to get deeper into b-to-b and is willing to consider acquisitions to do it. If RightWorks is on the sale block, CEO Coleman is wearing her poker face well. She insists that her large, more established b-to-b rivals have not stopped the company from winning deals. In fact, one brand-new customer win, the French conglomerate Credit Lyonnais, came over direct competition from Ariba, Commerce One and Oracle (ORCL). And she says from a financial standpoint, RightWorks is doing just fine. The company is putting the finishing touches on another round of private financing that will give it enough cash to last through the end of the year, she says, without providing any details. RightWorks` decreased valuation "We are going to be a sizeable private company," she says, adding that an IPO is possible for 2002. But at the same time, Coleman acknowledges that the new realities of the market decreased her company`s valuation, and that some potential customers are spooked at the thought of handing their business to a private software company with a relatively unproven business model. "Sure valuations are down, but that`s reflective of everyone. Just look at what`s happened to Ariba," she says. As for convincing corporate customers to choose RightWorks over Ariba or its other rivals, Coleman says the sales cycle is "always a challenge for private companies, but there are lots of examples in the software business where private companies have enjoyed tremendous success … The response has been great from customers." But even if RightWorks is making slow-and-steady progress, its 70-odd customer roster and estimated $36 million in 2000 revenue are dwarfed by its competitors. Given the fact that parent ICG is under pressure to provide some value to its embattled shareholders, a sale of RightWorks seems to be a forgone conclusion. The only question remaining: Who`s the buyer? http://www.upside.com/Ebiz/3a9ab7e61_yahoo.html |
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| aus der Diskussion: | INTERNET CAPITAL GROUP - es geht los ? |
| Autor (Datum des Eintrages): | guuruh (27.02.01 15:04:46) |
| Beitrag: | 97 von 17,989 (ID:2991598) |
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