Business-to-business exchange provider FreeMarkets cancelled merger agreements with Adexa, an e-commerce software maker FreeMarkets had agreed to acquire in February for about $340 million in stock. Both companies attributed the failed merger to the slowing economy, sour market conditions and delays in winning regulatory approval from the Securities and Exchange Commission. Instead, FreeMarkets and Adexa have both agreed to enter a nonexclusive partnership that calls for selling each other's software and services to joint clients. Additionally, FreeMarkets plans to take an equity stake of approximately 3 percent in Adexa for $6 million.
With the Adexa acquisition, FreeMarkets had hoped to add software that would enable its customers to identify, select and collaborate with trading partners in their private marketplaces or in public industry exchanges. The two companies have mutually agreed to terminate their merger talks without payment of any termination fees.