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Broadbase to acquire Servicesoft

Broadbase Software (Nasdaq: BBSW) plans to issue issue 35.1 million shares of stock as part of a deal to buy a privately-held maker of software for online services.

After market close Monday, Broadbase unveiled a plan to buy Servicesoft for 35.1 million shares, with options and warrants to buy stock. Stockholders of Servicesoft would own 36.5 percent of Broadbase under the agreement.

At Monday's closing price of 18.375 for Broadbase, the deal is worth more than $645 million.

Companies use Servicesoft's technology to provide customer service online. Broadbase would add Servicesoft's products to an existing line of software for customer analysis, online marketing and e-commerce.

Servicesoft has more than 180 customers, the companies said. Adding Servicesoft's product line lets Broadbase offer a "complete" suite of software for online customer relationship management, executives said.

"We definitely think this will increase our growth rate," CEO Chuck Bay said, during a Monday afternoon conference call with analysts.

Executives expected the deal to close by the end of the year. Broadbase plans to offer the newly integrated suite in the first quarter of 2001.

Shares of Broadbase have fallen nearly 53 percent since closing at 39 on July 13. The stock remains 78.6 percent below its all-time high, reached in early March when the overall Internet sector peaked.>