FreeMarkets

(FMKT)

announced a deal Thursday to acquire privately held

Adexa

, a developer of corporate supply-chain software, for about $341 million.

Separately, the company appointed Raymond Lane, former president and chief operating office or

Oracle

(ORCL) - Get Report

, to its board of directors.

The business-to-business online auction house will issue 17.25 million shares and options for all of Adexa's shares. Based on FreeMarkets' Wednesday closing price of $19.81, the purchase price is about $341 million.

Adexa had more than $50 million in revenue in 2000.

The deal is expected to close in the second quarter, at which point Adexa will become a wholly-owned subsidiary of FreeMarkets. The acquisition should add to FreeMarkets' revenue and gross margins in 2001 and to earnings per share in 2002, the company said.

Shares of Pittsburgh-based FreeMarkets, rose $1.94, or 9.8%, to $21.69 in recent

Nasdaq

. trading.