SBI to acquire Lante for $42 million

Professional services firm SBI and Co. said today that it would acquire Chicago-based technology firm Lante Corp. for about $42 million, or $1.10 per share, double Lante's closing stock price yesterday.

The companies said they expect the deal to close in the third quarter. Chicago-based Lante has 37,165,000 shares outstanding, according to the Nasdaq Stock Market. The deal has the approval of the boards of both companies.

SBI spokesman Ty Mattingly said the acquisition of Lante, in conjunction with SBI's proposed acquisition of Scient Inc., will greatly increase Salt Lake City-based SBI's presence throughout the U.S. Earlier last week, SBI said it had agreed to purchase certain assets of New York-based Web consulting firm Scient Inc., which has filed for bankruptcy (see story).

Mattingly said the Lante acquisition will increase SBI's workforce and add to its expertise in the areas of manufacturing, retail, transportation, telecommunications, financial services and consumer packaged goods.

The acquisition of Lante will also add to SBI's portfolio of services in such areas as enterprise framework development, business-to-business integration and enterprise application development.

"We think SBI will give Lante employees a stable, profitable place to grow their careers," said Lante spokesman David Deal. "And we think SBI's talent and Lante's talent will be a great fit for our clients."

Late today in a statement, Lante said it would lay off 22% of its workforce, or 45 employees.

Lante President and CEO Rudy Puryear said: "Lante is focused on operating a standalone business over the coming weeks until the anticipated close of our acquisition by SBI.... Amid a historic market downturn, reducing the size of our workforce is necessary to manage our costs in a responsible manner.

"Ultimately, combining forces with SBI and Company will provide excellent career alternatives for our people and top-quality service that our clients deserve," he said.

Related:

Copyright © 2002 IDG Communications, Inc.

  
Shop Tech Products at Amazon