Open Market to acquire Folio Corporation

Open Market will purchase 100 percent of Folio Corporation, a subsidiary of Reed Elsevier plc, for $45 million in equity and cash, subject to adjustment at the time of closing. The purchase consideration will be paid in the form of $25 million in equity, $15 million in cash and $5 million in either...

Full description

Saved in:
Bibliographic Details
Published inPR Newswire p. 1
Main Author Winkowski, Beth
Format Newsletter
LanguageEnglish
Published New York PR Newswire Association LLC 21.02.1997
Subjects
Acquisitions & mergers
Customers
Information industry
Information management
Internet
Publishing
Software industry
MA
United States > US
New England
Cambridge
Online AccessGet full text

Cover

More Information
Summary:Open Market will purchase 100 percent of Folio Corporation, a subsidiary of Reed Elsevier plc, for $45 million in equity and cash, subject to adjustment at the time of closing. The purchase consideration will be paid in the form of $25 million in equity, $15 million in cash and $5 million in either cash and/or equity depending on certain post-closing events. Shares issuable as purchase consideration are subject to staggered registration rights, half of which will be effective after June 30, 1997 and the remaining half after January 5, 1998. The acquisition will be accounted for as a purchase with a significant portion of the purchase price being allocated to in-process research and development and expensed at the time of closing. It is expected that the acquisition will be closed in the current quarter, pending expiration of the applicable waiting period under the Hart-Scott-Rodino Act and satisfaction of certain closing conditions. Folio, with an employee base of approximately 190, will operate as the Folio Division of Open Market and will remain located in Provo, Utah. Folio's offerings include the Folio 4.0 product family and Folio(R) siteDirector 3.1. Each are founded on Folio's infobase technology which manages highly compressed, secure and rapidly searchable multimedia information. The Folio 4.0 family includes Folio(R) Views 4.0, a high-end access and retrieval product designed for professional information users; Folio(R) Builder 4.0, an industrial-strength software suite for creating, distributing and updating electronic information; Folio(R) Publisher 4, a redistribution license and software solution for professional information providers; and Folio(R) Integrator 4.0, a tool set that enables developers to incorporate Folio's rich information management components into information solutions. Folio Integrator includes an ActiveX/OCX interface, a C/ C++ interface, compatibility with Visual Basic, and other development tools.