Filed by AppNet, Inc.
Pursuant to Rule 425 Under the Securities Act of 1933
And Deemed Filed Pursuant to Rule 14a-12
Under the Securities Exchange Act of 1934
Subject Company: AppNet, Inc.
Commission File No. 000-26263
<PAGE>
FOR IMMEDIATE RELEASE
AppNet to Merge with Commerce One
Combined company to become first fully integrated e-commerce applications,
strategy consulting, and Internet professional services company in the
industry.
On June 20, 2000, AppNet and Commerce One, Inc. (NASDAQ: CMRC), the leader
in global e-commerce solutions for business, announced that they had signed
a definitive agreement to merge. Under the terms of this merger, AppNet
will become the professional services arm of Commerce One, providing a
valuable new addition to the software company's offerings.
Leading financial and industry analysts have applauded Commerce One's
decision to acquire AppNet, predicting that the merger will create a strong
player in the e-commerce and e-marketplace solutions space. By bringing AppNet
into its fold, Commerce One is strengthening its services offering and
doubling the size of its staff - a major coup in today's tight technology
labor market. The combined companies will have 44 offices in 18 countries
around the world and more than 2,300 employees.
B2B Industry Looks for Major Player
Commerce One is the leader of mega industry exchanges, and AppNet is a
leader in implementing e-marketplaces. Together, the two companies will be
able to deliver expanded e-business solutions to the B2B marketplace, and
their clients will enjoy a much faster speed to market and a stronger end
product.
And there couldn't be a better time for Commerce One and AppNet to emerge
as an e-marketplaces leader. According to Forrester Research, over 50% of
an estimated 2.7 trillion in B2B commerce will be done through
e-marketplaces by 2004. Forrester also noted that companies who spend $1
billion a year or more on purchasing will spend $3 million to $4 million to
implement online procurement - most of that is spent on consulting, Web
development, and systems integration work.
What does the merger mean for AppNet's clients and stockholders?
In short, this merger opens up a whole new world of business opportunities
for AppNet. The two companies share the same vision for global Internet
marketplaces, and Commerce One's international presence provides a strong
foundation for the expansion of AppNet's services offerings. Furthermore,
by joining together, Commerce One and AppNet are creating an e-commerce
company like no other - one that will truly excel in the B2B e-marketplace
space. According to The Washington Post "Commerce One . . . isn't just in
the business of building electronic commerce systems, it runs them,
collecting fees for its operations . . . It's the difference between being
in the construction business and being a real estate development firm that
builds its own office buildings and collects rent. That difference gives
AppNet stockholders the potential for greater future growth in the value of
the Commerce One shares they will get when the two companies merge."
According to AppNet CEO Ken Bajaj, "AppNet is excited to be joining with
the leader in e-commerce - this is a great opportunity for our company to
expand and grow. The combination of Commerce One's e-commerce
infrastructure, AppNet's Internet professional services, and Commerce One
professional services partnerships will be powerful, delivering
industry-leading end-to-end e-commerce solutions. "
For more information about Commerce One's acquisition of AppNet, go to
http://www.appnet.com/commerceone/index.html.
