CMGI Agrees to Buy Web Auctioneer UBid

CMGI Inc. agreed to buy UBid Inc. for about $407 million in stock in what would be the Internet venture fund’s first acquisition of an online auctioneer. CMGI said it plans to use UBid’s online merchandising and inventory management resources to spur growth at its affiliates, including AltaVista and MyWay.com. “There’s tremendous opportunity in applying these techniques to CMGI’s existing e-commerce companies,” Chief Executive David Wetherell said. UBid runs online auctions in which businesses and consumers can buy and sell brand-name products. UBid customers can name their own prices on products in 12 categories, including computers, jewelry and gifts, clothing and apparel, and travel. The Chicago-based company lost $25.5 million on revenue of $204.9 million last year. Under terms of the deal, Andover, Mass.-based CMGI would exchange 0.2628 share for each UBid share, valuing UBid at $31.67 a share. UBid rose $3.69 to close at $30.03, while CMGI fell $2.69 to close at $117.81, both on Nasdaq. All of UBid’s 300 employees are scheduled to join CMGI, which employs about 3,000 people.