Rocky Mountain Internet Inc, Denver, Colorado-based internet service provider and web development and hosting company, announced it has acquired Application Methods Inc, a software development and consulting firm specializing in custom database- driven internet, intranet and extranet software. Under the terms of the agreement, RMI will acquire the Seattle-based company in a $5m transaction of which $2.5m in company stock will be paid up front, and the remaining sum will be disbursed over three years. AMI’s flagship product is e-Sell, an internet store/catalog software package designed for small to medium-sized businesses. The product targets merchants rather than developers by enabling complete browser-based store administration. AMI claims Netscape Communications Corp, NetObjects Inc, SmithKline Beecham and Ernst & Young as customers. RMI is counting International Data Corp research that estimates the total value of internet transactions will grow to $220bn worldwide by the 2000. RMI said it will integrate e-Sell with its recently-acquired Infohiway search engine technology, to enable its customers to establish and maintain a worldwide online shopping outlet backed with the marketing muscle of a unique search engine. AMI’s founder Ron Stevenson will join the RMI management team as President of Application Methods Inc. The company will continue to operate in Seattle and function as a wholly-owned subsidiary of RMI.
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