Covisint assets to be purchased

Software company Freemarkets Inc. has agreed to buy certain assets of Covisint, the financially troubled online auto services company, according to a report published by Reuters. Covisint was formed by DaimlerChrysler AG, General Motors Corp. and Ford Motor Company in February 2000. The company’s goal was to make it easier and cheaper to buy products online, but some automakers and suppliers have been hesitant to embrace it.
FreeMarkets, a company based in Pittsburgh, will provide technology and services to the auto industry under the deal, which is scheduled to close in early January. Covisint will transfer contracts for auction services to FreeMarkets, which will provide committed revenue to FreeMarkets over the next three years.