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Compuware Set To Acquire Covisint

Technology provider Compuware Corp. announced Feb. 5 that it had entered into a definitive agreement to acquire the products and technology of Covisint, an automotive e-business supplier exchange and technology provider formed in 2000 by original member automakers Ford, General Motors, DaimlerChrysler, Renault and Nissan. Financial terms of the deal were not disclosed, although Detroit-based Compuware says it expects the purchase to add one to two cents per share to Compuware's earnings in the fiscal year ending March 31, 2005. Both parties expect the transaction to close within 30 days, subject to standard closing conditions. Compuware will acquire Covisint's portal and data-messaging services, as well as its Web-based problem-solving tool. FreeMarkets Inc. signed an agreement in December 2003 to acquire Covisint's auction services. Covisint has more than 135,000 users in more than 90 countries, it reports. "Now that Covisint is running mission-critical processes for the OEMs and large Tier One suppliers, they would like us to rapidly expand our capabilities," says Covisint President and CEO Robert Paul. "Under the stewardship of Compuware we will be able to globally scale our technology offering." Compuware says it has not made a final decision about how it will integrate Covisint and will operate the new addition as a separate business unit until it does.

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