FreeMarkets Buys Online Auto Exchange

The purchase of Covisint assets from three major car makers helped spur a rally in FreeMarkets stock.
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Shares of

FreeMarkets

(FMKT)

enjoyed an end-of-the-year boost Wednesday after the sourcing-software maker announced it is buying the assets of online automotive exchange

Covisint

.

Shares of FreeMarkets traded as high as $6.75 intraday and were up 30 cents, or 4.4%, to $6.60 as of 12:25 p.m. EST.

Under the deal, expected to be completed in early January, Covisint will transfer its customer contracts for auction services to FreeMarkets, providing committed revenue to FreeMarkets over the next three years. Pittsburgh-based FreeMarkets will serve automakers

DaimlerChrysler

,

General Motors

and

Ford

-- three of the five automakers who founded Covisint in 2000 -- under long-term agreements.

Financial terms of the deal were not disclosed. Wire services reported that FreeMarkets plans to file a document with the

Securities and Exchange Commission

detailing the terms in January.