Verticalnet Reels In TigrisVerticalnet Reels In Tigris

Verticalnet Inc. said Monday that it has acquired the assets of sourcing and supply-chain consulting firm Tigris Corp. in a stock and cash deal.

Verticalnet will pay 1,870,450 shares of its common stock and $3.5 million in cash. The company will keep the Verticalnet name.

The announcement came a little more than a week after Verticalnet said on Jan. 24 that it had raised $6.2 million to fund software development and potential acquisitions.

The companies have begun to integrate sales, marketing, and administrative functions. During the next few months, Verticalnet will release new versions of the software that integrates Tigris spend analysis and sourcing functions into Verticalnet's products. The company said it will continue to support Tigris platforms until clients upgrade to new versions.

Verticalnet president and CEO Nathanael Lentz will keep those positions. Brent Habig, founder and CEO of Tigris, will become executive VP of sales and consulting, while Gene Godick will remain executive VP and CFO.

Verticalnet expects its revenue for 2004 will more than double from the previous year from its previous stated guidance. It estimates that combined revenue for the full year ending Dec. 31 will range from $21 million to $24 million, and that revenue for the first quarter, ending March 31, will fall between $3.8 million and $4.2 million. Those forecasts include operating results for Tigris as of Jan. 30.

The company also released preliminary revenue forecasts for the fourth quarter of 2003, ending Dec. 31, 2003--Verticalnet says it expects to report a net loss of $1.1 million on $2.2 million in revenue, a loss of 6 cents per share.

Verticalnet didn't offer guidance about the increase in operating margins expected from the acquisition. However, a company spokesman said executives believe the transaction will give an immediate boost to Verticalnet's 2004 cash flow.