Online auctioneer company FreeMarkets Inc. saw its shares jump 19% on news that it scrapped a deal to acquire Adexa Inc. of Los Angeles, whose supply chain software lets companies share their inventory, planning and purchasing data with suppliers.
"Integration of a major acquisition in a new segment, supply chain management, introduces a lot of risks in the current economic environment," FreeMarkets' Chief Executive Glen Meakem said. He said those risks came as FreeMarkets' investors were demanding profitability as soon as possible.
FreeMarkets also reiterated previous guidance for the second quarter, calling for a loss of 22 cents a share on revenue of $36 million to $38 million.
Shares of FreeMarkets jumped $2.33 to close $14.55 on Nasdaq.