E-learning service provider Centra Software Inc., which Thursday reported first-quarter earnings that easily beat analyst expectations, said it has agreed to buy Mindlever.com Inc. for an undisclosed amount. The news pushed Centra stock up almost 8%.

Privately held Mindlever develops software that captures, stores, and tracks learning objects--the video, audio, text, and multimedia files that make up E-learning content. Though Centra was interested in developing the technology in-house, Mindlever's offering was already fully integrated thanks to a partnership between the two companies.

The planned cash and stock transaction was very customer-driven, says Chris Reed, Centra's VP of corporate strategy. "A third of their customers were our customers as well, and they were raving about how powerful the combination was."

Analysts agree. "The product will sell well to [Centra's] other existing customers; learning objects are cutting-edge technology," says Dalton Chandler of financial services firm Needham & Co.

In the first quarter ended March 31, DaimlerChrysler, First Union, and 69 new accounts pushed Centra's revenue to $9.1 million, a 139% increase over the same period last year. Pro forma loss for the quarter was $2.8 million, or 12 cents per share, compared with a pro forma net loss of $3.2 million, or 15 cents per share in the first quarter of 2000.

JPMorgan H&Q estimated revenue for the quarter to be $8.3 million, or 14 cents per share. Says analyst Jim Pickrel, "They had a very good quarter, especially when many software companies in my space are blowing up left and right."