Siebel eyes Opensite as it looks into e-commerce

Siebel Systems is to buy OpenSite, an e-commerce software developer, in a deal valued at more than $440m (£275m).

It has also posted first-quarter profits that are nearly double its figures for the same quarter last year.

Analysts said the results are echoing previous forecasts made about the customer relationship management (CRM) market. For its first quarter, ended 31 March, Siebel made $46.3m profit on $309.4m sales, compared with $21.8m profit on $141.5m sales in the same period a year ago.

"(CRM) is incredibly hot," said Peggy Menconi, research director for CRM at analyst AMR Research.

Over the past year, Siebel has advanced into marketing automation, wireless applications and new applications for SMEs.

The acquisition of OpenSite, due to close this quarter, is the latest development in Siebel's plan to become a major player in the CRM market.

OpenSite has developed software that allows a company to provide a host of traditional auctions and reverse auction sales transactions.

On the back-end of its partner relationship management (PRM) business, Siebel has been adding PRM functions to its e-business software and has struck an alliance with ChannelWave Software.

As part of the deal, ChannelWave will integrate its PRM applications with Siebel's business applications.

Together, the companies claimed to have the most complete offering for direct and indirect sales channels.

OpenSite will operate under the Siebel name. Kip Frey, Opensite's current chief executive, will become general manager of Siebel's e-commerce unit.