, an Internet business-to-business trading company, said Wednesday that it would buy
, a private company focused on Internet trading technology.
Under terms of the all-stock deal, VerticalNet will issue about 2 million shares of common stock in exchange for Tradeum, valuing the company at roughly $500 million.
Shares of VerticalNet rose following the news Wednesday, and closed 16 points, or 6.7% higher at 253 1/2.
Though it is based in San Francisco, Tradeum was founded in Jerusalem in 1998 and still conducts most of its research and development there.
Last November, Tradeum named as chief executive Zev Laderman, former vice president for marketing at
. The companies did not say whether Laderman would remain chief executive of Tradeum after the acquisition.
The deal with VerticalNet is similar to another acquisition last November in which
of Mountain View, Calif., for $400 million.