Critical Path Will Purchase Isocor

Critical Path Inc., which manages companies’ electronic mail and messaging services, agreed to buy Santa Monica-based Isocor for about $287 million in stock to increase sales to large Internet service providers and international customers. Isocor sells e-mail and directory software. Critical Path will swap 0.4704 of a share for each Isocor share, valuing them at $23.52 each, more than double Wednesday’s close. San Francisco-based Critical Path expects to complete the purchase by January. Isocor shares surged 72%, or $7.25, to close at $17.38 on Nasdaq. Critical Path shares fell $3 to close at $47, also on Nasdaq. Isocor reported third-quarter net income of $88,000, or 1 cent per share, contrasted with a loss of $1.8 million, or 19 cents, a year ago. Isocor President and Chief Executive Paul Gigg will become executive vice president and chief operating officer at Critical Path. Isocor’s 240 employees will not be affected. by the deal.