Kana, Silknet Get the Urge to Merge

In a move that signals the growing importance of integrated customer service on the Web, Kana Communications plans to acquire Silknet Software in a deal valued at $4.2 billion.It is one of the largest e-business software mergers to date.

     With the merger, Kana will add Silknet's comprehensive customer service applications to its marketing, sales and service products. Silknet's "customer-facing" applications allow consumer to view their preferences, support requests, sales questions and order status.

     Under the terms of the merger, each outstanding share of Silknet common stock will be exchanged for 0.83 shares of Kana common stock, representing a 21% premium over the average exchange ratio for the last 30 days.