BroadVision to Buy Interleaf for US$877 Million

BOSTON (01/27/2000) - Interleaf Inc., a maker of XML-based software, yesterday said it will be acquired by BroadVision Inc., which makes personalized e-business applications, in a deal worth approximately US$877 million.

Under the terms of the agreement, each outstanding share of Interleaf common stock will be exchanged for .3465 shares of BroadVision common stock, according to a statement from Interleaf. The transaction has been approved by both companies' boards of directors and awaits regulatory approval as well as approval by Interleaf's stockholders, the statement said.

The combined companies will have a customer base of 2,500 "blue chip" companies, according to Interleaf. XML (Extensible Markup Language) will continue to be the focus for BroadVision and Interleaf through its separate e-Content Company business unit. The e-Content Company employs nearly 70 percent of Interleaf's 400 employees, Interleaf officials said. The combination of BroadVision's One-to-One personalized e-business applications and Interleaf's XML-based e-content management tools will help the companies deliver XML technology for Web applications as well as wireless devices, officials said.

Also today, BroadVision issued its fourth-quarter and year-end results. For the fourth quarter of 1999, revenue was $43.7 million, compared to revenue of $16.0 million for the fourth quarter last year, according to the company's statement.

Net income for the quarter was $8.1 million, or 9 cents per share, compared to $2.1 million, or 3 cents per share, for the same period last year. The per-share income result beat the consensus forecast of 6 cents per share by 23 analysts polled by First Call Corp.

For the 1999 fiscal year, revenue reached $115.5 million, compared to $50.9 million for 1998, according to BroadVision. Net income for the year was $18.8 million, or 22 cents per share, compared to $1.9 million, or 5 cents per share, for the year-earlier period, the company said. First Call's year-end consensus forecast was 19 cents.

BroadVision attributed its 1999 results to its success in attracting new customers around the world, in banking, telecommunications, manufacturing and dot-com industries. In addition, the company said it got a significant boost from repeat business.

BroadVision is in Redwood City, California and can be reached at +1-650-261-5100 or at http://www.broadvision.com/. Interleaf, in Waltham, Massachusetts, can be reached at +1-+1-781-290-0710 or at http://www.interleaf.com/.

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