Progress, which sells e-business software, has signed a definitive agreement to buy eXcelon for about $24 million in cash. eXcelon shareholders must still vote on the deal, which has already secured the approval of the boards of both companies.
eXcelon will bring to Progress its expertise in XML services and tools, said Greg O'Connor, president of Progress subsidiary Sonic Software. "Our products are highly synergistic," he said.
eXcelon representatives did not immediately return calls seeking comment.
eXcelon has begun to carve out a name for itself in themarket for XML databases and services. Earlier this year, the company a deal with e-commerce giant Amazon.com to provide software that would give real-time updates of available inventory in Amazon's used goods Marketplace.
For its part, Sonic Software has focused on tying together the data in the disparate e-business software packages used by companies' human relations, sales and marketing departments.
Under the deal, Progress' purchase price for eXcelon amounts to $3.19 per share of eXcelon stock. In late afternoon trading, eXcelon stock was up 71 cents to $3.12. The deal is expected to close within 90 to 100 days, O'Connor said.
eXcelon has about 200 employees, O'Connor said. The companies have not yet determined whether there will be layoffs at either company as a result of the merger, he said.