Judge OKs Webvan Asset Sale to Kaiser

Webvan Group Inc., a defunct online grocer that sought bankruptcy protection in July, won a judge’s approval to sell its software, technology and related assets to a unit of Kaiser Permanente for $2.65 million.

Kaiser Foundation Health Plan Inc., Kaiser’s health maintenance organization unit, bid on the software and other intellectual property in an auction Monday, and U.S. District Judge Joseph Farnan Jr. approved the sale Wednesday.

Webvan founder Louis Borders withdrew an earlier $2.5-million bid for the assets, company attorney Debra Grassgreen told the judge.

In addition, Kaiser agreed to pay $265,000 for hardware to use the technology and will let Webvan get out of a $700,000 lease in Oakland, where Kaiser is based. Kaiser plans to use the software and other assets to distribute pharmaceuticals, Grassgreen said.

Webvan, based in Foster City, Calif., will file a plan to distribute proceeds from sales of its assets to creditors about Oct. 15, Grassgreen said.

Farnan scheduled a hearing for Nov. 5 to review the plan.