Blackboard is buying WebCT in a $180 million merger of
companies that provide software and services to the education market.
The cash deal, which still requires regulatory approval, is expected to
close late this year or in early 2006.
"[The merger is] an unparalleled opportunity for two successful,
mission-driven organizations to unify in a combined platform singularly
focused on being the premier partner for educators on a global basis,"
Michael Chasen, Blackboard president and CEO, said in a statement.
The combined company will retain the Blackboard brand and have more than
3,700 clients in higher education, K-12, government and corporate sectors.
It will have approximately 800 employees and seven offices worldwide.
The merger was also welcomed by WebCT investor CMGI.
"We are encouraged by the positive activity in the venture capital and
mergers and acquisitions markets," Joseph C. Lawler, president and CEO of
CMGI, said in a statement.
Waltham, Mass.-based CMGI, which rose and fell with the dot-com bubble, owns
13.5 percent of WebCT through its @Ventures investment arm.
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