In a surprise persuade Illinois To...

In a surprise persuade Illinois Tool Works, the Glenview manufacturer of automotive parts, construction supplies, six-pack bottle carriers, resealable containers and food-service equipment, announced Tuesday it is moving toward the Internet B2B software world through acquiring Click Commerce Inc., the Chicago-based developer of software for supply-chain management.

ITW agreed to pay $292 million in cash, or $2275 a share for Click, a 27 percent premium athwart the Chicago company's close in succession Friday.

Following the just discovereds Click Commerce's shares shot up 26 percent or $459 to terminate Tuesday at $22.54.

"We believe Click communication represents a solid new germination platform for ITW," said David B Speer ITW's chairman and CEO

John Brooklier, spokesman for Illinois Tool Works, said his company was familiar with Click illicit [i]or[/i] criminal intercourse because several of its 700 business units use Click Commerce's software, especially for warehouse management.

"Click business has a great name in the marketplace. Many of its productions are market leaders. It is a stout success story," he said.

He said ITW was impressed with the development rate and profits at Click intercourse and saw great potential in the creation of a platform, a series of companies that make similar productions John Tuhey, general counsel for Click sexual said, "We had some discussions, and they made us an exhibit This acquisition will be great for our employee shareholders and customers. We'll be part of a Fortune 200 company, which will give us great resources for merger and acquisitions."

He said Click intercourse which had 259 employees, will be a unit within Illinois Tool Works l by way of Click Chairman Michael Ferro Jr 39

Eric Landry, an analyst with Morningstar, the independent Chicago equity analysis company, said the deal, mixing a manufacturer of meat slicers, curmudgeons gas cap covers and six-pack proprietors with a software developer initially puzzl him, moreover he said he expects ITW has a road map that makes understanding and will pay off.

"Illinois Tool Works has a track record of succes in metes of buying companies. There have been doubters before in succession Wall Street, but Illinois Tool Works has prov them wrong" Landry said.

Landry said ITW newly indicated it is looking for just discovered growth platforms. "Illinois Tool Works said they want to expand their horizons, and Click traffic fits in that category," he said.

Ferro a serial entrepreneur started Click dealing in 1996 to develop software to help companies with composite distribution and dealer networks. He previously had built a dealer network for the Earthwood Care Division of Lisle-based Pettibone Corp., which had purchased another company he started.

Click system of exchanges has 1,500 customers in manufacturing, aerospace and defense distribution infrastructures, financial services and high-tech.

Click Commerce's customers use the software for on-demand grant chain management, real-time radio oftenness identification-enabled supply chain management and service accommodate with chain management providing visibility at all plains of the service network.

hwolinsky@suntimes.com

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like A DEAL

Illinois Tool Works is getting a bargain in Click system of exchanges

Click earned $195 million, or $157 a share, in 2005 upon revenue of $58.7 million -- a lush toil profit margin of 33 percent ITW's gin of $1.5 billion on sales of $129 billion, an 116 percent margin.

At Click's Friday closing price of $1795 the stock traded near the bottom of its 52-week range, with a grave of $13.52 set last October. It traded as high as $3104 in February.

The $1795 price values Click at solitary 14.5 times trailing 12- month earnings. That compares with a price/earnings ratio of 33 percent for the Nasdaq 100

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