Divine To Acquire Viant In $96M Stock Deal

Divine Viant

Company executives were not immediately available for comment but are expected to host a conference call Friday afternoon. Over the past two years, divine, based here, has acquired more than 30 failing companies including other e-services firms such as marchFirst and hosting provider Intira.

Viant, an e-services company based in Boston, has struggled along with other once-high-flying consultants to stay afloat amid the sharp decline in market demand and weakened economy. In mid-February, Viant reported a loss, before charges, of $8.5 million for its quarter ended Dec. 31.

Mounting losses have been accompanied by Viant layoffs and office closures. Viant closed trading Thursday at $1.30 per share. Following news of the merger Friday morning, Viant's stock improved slightly to about $1.69 per share.

Meanwhile, divine's stock is faring worse. It closed trading Thursday at 48 cents per share, near its 52-week low of 42 cents. News of the merger found divine's stock trading down Friday morning to 42 cents per share.

Under terms of the deal, Viant will pay a cash dividend of $24 million to its stockholders prior to the completion of the merger, pending approval of both companies' stockholders.

The merger, according to divine, is expected to expand the company's client base with Viant's offices in Boston and New York, and enhance divine's presence in Los Angeles.

Viant CEO Bob Gett in a released statement called the agreement great news for Viant clients, shareholders and employees and noted the opportunity to leverage "divine's international capabilities and product offerings."