Netscape Communications Corp. yesterday announced definitive agreements to acquire DigitalStyle Corp. and Portola Communications, Inc. in a deal valued at more than $56 million.

DigitalStyle in San Diego will provide Netscape with a World Wide Web graphics tool, and Netscape will use Portola's expertise in high-performance electronic mail messaging, said Jennifer Mahony, a Netscape spokeswoman.

"DigitalStyle's Web graphics tool will be a nice fit with what Netscape is doing in graphics that are based on open standards, Java and the tools area, which fits in with VisualJava script," she said. Although Mahony offered no specifics on Portola's role, she said the Palo Alto, Calif.-based company's expertise in Internet Messaging Access Protocol 4 and Post Office Protocol 3 would be further detailed as Netscape rolls out future products.

Terms of the agreements call for Netscape in Mountain View, Calif., to purchase 100% of the outstanding capital stock of both privately held companies. Netscape plans to issue approximately 2.08 million shares of its stock to pay for the purchases. Netscape shares closed up fifteen-sixteenths of a point at 27 1/16 points in trading yesterday on the Nasdaq Stock Exchange. At that price, the deal would be worth more than $56 million. The purchases are expected to be completed in the second or third quarter.

by Ed Golden

Source: Computerworld