By Business Media Network staff
Toronto-based e-commerce firm Microforum announced that it has closed a deal to purchase New York-based Blue Hypermedia for US$14 million.
Microforum signed a letter of intent June 26 to buy Blue Hypermedia, operators of the notable Blue.com Web site. With the acquisition, Microforum will gain access to many of Blue's big-name clients like the New York Times, Anheuser Busch and iMotors.com. Microforum also has contracts with big-name Canadian firms like Ford Canada and Chapters.
The deal will consist of a US$4.9 million cash payment and the issuance of 1.7 million common Microforum shares.
Microforum posted an annual profit of US$2.8 million in 1999. The company is planning to issue an IPO on the Nasdaq in the near future. In June, the firm applied for a listing on the Nasdaq exchange.