Viewlocity Finishes Deal To Go Private

The supply-management software vendor will operate as a wholly owned subsidiary of Viesta.
Supply-management software vendor Viewlocity Inc. finalized its latest reorganization effort on Monday by announcing completion of its efforts to go private, a transaction backed by investment group Investcorp.

As part of the transaction, effective Dec. 31, Viewlocity was acquired by Viesta Corp., and will operate as a wholly owned subsidiary. Viewlocity received "significant new equity financing" from an affiliate of Investcorp, according to the companies.

Investcorp paid only nominal consideration to holders of Viewlocity's outstanding common stock and Series A preferred stock.

Viewlocity has struggled financially the past few years. In its last financial report, in May 2003 for the first quarter of 2003 ended March 31, the company reported a loss of $3.7 million on revenue of $4.9 million. For fiscal year 2002, the company reported a loss of $27 million from continuing operations after reporting a loss of $37 million in 2001.

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