November, 2001

IBM/CrossWorlds Software By Ross Hanig The Recorder November 8, 2001 Venture Law Group recently helped Burlingame's CrossWorlds Software Inc. get acquired by IBM Corp. for $129 million in cash. But for attorneys on the transaction at VLG, the deal was bittersweet. Since IBM is swallowing CrossWorlds, the acquisition also marks the end of CrossWorlds' run as a client of VLG. "That's an inevitable part of the process," said Steven Tonsfeldt, a partner on the deal in VLG's San Francisco office. Tonsfeldt said the firm had represented CrossWorlds since the mid-1990s and helped take the company to market in its $40 million initial public offering in June 2000. Even in the face of an unstable market, Tonsfeldt said the IBM acquisition was relatively smooth. "When your transaction currency is cash, a lot of your stock market volatility is taken out," he said. And, "with a buyer like IBM, you're not really concerned that they'll have enough money." In VLG's 20-attorney San Francisco office, Tonsfeldt worked with corporate and securities associate Kristen Kercher and employee benefits senior attorney Kate Rowan. In Menlo Park, partner Jon Gavenman led corporate and securities associate Eric Bowen. Partner Mark Windfeld-Hansen helped in tax with fellow partner Sharon Hendricks coming on in employee benefits. Senior attorney Richard Hsu rounded out the team in intellectual property. CrossWorlds' principal shareholders, Terence and Katrina Garnett, were represented by Latham & Watkins corporate partner John Newell in San Francisco and tax partner Samuel Weiner in Los Angeles. Daniel Bergeson of San Jose's Bergeson Eliopoulos served as co-counsel to the Garnetts. IBM relied on New York's Cravath, Swaine & Moore. This article first appeared on the Web on law.com. Copyright © 2001 NLP IP Company. All rights reserved