| Tech Stock News and Analysis |
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| Tuesday, September 05, 2006 |
Illinois Tool Works Inc. said Tuesday it has agreed to acquire Click Commerce Inc., a maker of supply chain management software, for $292 million.
ITW, which makes automotive parts, construction supplies and food-service equipment, offered to buy the outstanding shares of Click Commerce for $22.75 each, representing a 27 percent premium over Friday's closing price.
Click Commerce makes software for demand chain management, real time RFID-enabled supply chain management and other functions. The company, based in Chicago, reported revenue of $74 million in the past 12 months.
Under the agreement, ITW said it has 10 business days starting Tuesday to commence a tender offer for the shares. The offer will be open for at least 20 business days during the initial tender period.
The boards of directors of both sides have approved the transaction, which is expected to close in the fourth quarter.
Shares of Click Commerce rose $4.59, or 26 percent, to close at $22.54 on the Nasdaq Stock Market, while ITW fell 4 cents to finish at $44.13 on the New York Stock Exchange.
David Speer, ITW's chairman and CEO, said Click Commerce is well-positioned to continue to expand its value-added software solutions and market presence across a wide range of industries, including several where ITW has a strong presence.
"The company's growth through a combination of internal product development initiatives and complimentary acquisitions is very similar to ITW's approach and affords us exciting future growth opportunities in this software solution space," he said.
Click Commerce had revenues of $59 million last year, compared with $12.9 billion for Illinois Tool Works. |
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