Tech-Consultant Aris To Buy Fine.Com In $12 Million Deal

Bellevue technology-consulting company Aris has reached an agreement to acquire Seattle's fine.com in a $12.25 million stock-and-cash deal.

The news pushed both companies' stock higher: Fine.com shares surged $1.656, or 74 percent, to close at $3.906; Aris was up 50 cents to $8.50.

Fine.com, which has struggled financially since it went public in 1997, produces World Wide Web pages - an expertise that "perfectly compliments" Aris' growing business in electronic commerce, said Aris President and Chief Executive Paul Song.

He said the purchase will nearly double Aris' Internet business, which generated $2.5 million from 40 projects in the first quarter. Fine.com's customers include Nasdaq, Marriott and General Electric.

Fine.com is known for its creative Web designs, Aris for its less-visible technical work on the "back end" of business-to-business Web sites.

All of fine.com's 65 employees in downtown Seattle and elsewhere will be invited to stay with the merged company.

Daniel Fine, who founded fine.com in 1994 and is chief executive, will be "the evangelist or the champion" for Aris' expanded Internet business, Song said.

Aris, founded in 1990, is a computer-consulting and -training company. It expanded last year through a $33 million acquisition of Florida-based InTime Systems, a leader in payroll software and consulting.

With 800 employees, Aris had revenue of $116 million last year. In the quarter ended March 31, the company reported a profit of $1.6 million on $30.2 million in sales.

Fine.com lost $3.5 million on $6.1 million in sales last year.

Under the agreement approved by the boards of both companies, Aris will provide up to 1 million shares of Aris stock, plus up to $5.25 million in cash, for a total value of up to $12.25 million.

Keith Ervin's phone: 206-515-5632. E-mail: kervin@seattletimes.com