Siebel Systems To Buy Edocs

Additional payments based on achieving revenue and other contractual milestones may be paid in 2006.

Natick, Mass.-based Edocs provides e-billing and customer self-service software solutions.

Siebel said that excluding the impact of a one-time merger-related charge of an estimated $8 million to $10 million, the transaction will reduce first-quarter earnings by about 1 cent a share. Siebel expects the transaction to be approximately neutral to earnings for the remainder of 2005.

Analysts surveyed by Thomson First Call expect Siebel to earn 6 cents a share in the first quarter, and 27 cents a share in 2005.

The boards of both companies have approved the acquisition, which is expected to close early in the first quarter.

Copyright © 2004 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.