Xpedior jumps on IBM deal

Jan. 2, 2002 4:43 p.m. PT

Xpedior Inc. (Nasdaq: XPDR) said Thursday it has expanded its software alliance relationship with IBM (NYSE: IBM) and will develop products for IBM's Websphere platform.

Shares of the e-business enabler Xpedior were up 0.66 to 1.75. IBM was off 0.69 to 98.69.

The new deal, which augments previous software agreements begun last year, calls for Xpedior to develop templates for IBM software and technology. The focus will be on IBM's Websphere software platform, including WebSphere Application Server, MQSeries and VisualAge for Java.

According to Xpedior, the new alliance will result in faster delivery of the new products to the companies' mutual customers and allow for customization of the base software.

Financial terms of the deal were not disclosed.

The new alliance comes on the heels of a grim third quarter for Xpedior. The company's revenue dropped sequentially and earnings fell well short of First Call estimates. Its majority shareholder PSINet (Nasdaq: PSIX) took a loss of $29 million from discontinued operations from Xpedior.

Xpedior also reorganized and reshuffled management as its CEO resigned.