SmartForce Snaps Up Centra Software In Stock Deal

SmartForce Centra Software

The deal adds live e-learning talents to SmartForce's portfolio of offerings, observers said.

Centra, founded in 1997 by Lotus Development veteran Leon Navickas, helped pioneer distance-learning and collaboration applications. Navickas will stay on as CTO of the combined company, according to Centra, Lexington, Mass.

"The combination [of the two companies is truly a watershed event for the e-learning industry," said Greg Priest, chairman and CEO of SmartForce, in a statement.

SmartForce has its roots in CBT Technology, a company that specialized in providing online training and content for software applications such as Lotus Notes or Microsoft Excel.

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SmartForce also released its earnings for its fourth quarter ended Dec. 31. For that period, revenue was $65.3 million, up 13 percent from $57.7 million for the year-ago period. Net income was $2.6 million, or 4 cents per share, excluding amortization of tangible assets, in line with estimates, the company said.

MaryAlice Colen, chief evangelist at Interwise, which competes in e-learning with Centra, said the buyout makes sense for SmartForce.

"This moves SmartForce into live e-learning, which is evidence that it's a hot market," she said.

Interwise, Santa Clara, Calif., offers similar capabilities but is broadening its reach into i-seminars, i-meetings and i-conferences, she added.

Navickas said the new technology unit he will head up "has a budget larger in size than all the public e-learning companies combined."

Centra employs about 300 people; SmartForce employs about 1,500.

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