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WebMethods, i2 strengthen software accord

The companies say they are beefing up their business-to-business alliance with an agreement involving software sales, integration and development.

    Software makers WebMethods and i2 Technologies on Monday beefed up their business-to-business alliance with an agreement involving software sales, integration and development.

    Under the terms of the new four-year agreement, i2 will sell WebMethods' integration software as part of its i2 TradeMatrix services and software systems, the companies said in a joint statement. The deal also calls for the companies to develop software jointly.

    The companies already had a co-marketing agreement on the books.

    "We will work together to embed our integration software in all of i2's products as well as develop new technologies in the collaborative e-commerce area," Phillip Merrick, chief executive of WebMethods, told CNET News.com.

    WebMethods is expected to generate about $100 million of additional revenue during the course of the agreement's four-year run, Merrick said.

    In addition, the companies have agreed to a reseller alliance through which WebMethods will be i2's preferred vendor for integrating TradeMatrix software with enterprise and legacy applications.

    Irving, Texas-based i2 makes business-to-business e-commerce software that helps companies build online exchanges for buying and selling goods. WebMethods, of Fairfax, Va., makes software that allows businesses to connect disparate software systems in order for them to communicate and work together.

    The deal comes just days after i2 said it is acquiring RightWorks, an e-commerce software maker, in a stock deal worth roughly $114 million to round out its business-to-business product portfolio.

    To support their new alliance, both i2 and WebMethods will dedicate resources to create a business unit focused on joint product development and staffed by employees from both companies. i2 plans to have products incorporating WebMethods software by the third quarter.

    In connection with the agreement, i2 has the right to purchase up to 750,000 shares of WebMethods common stock, the companies said in a statement.