Software company FreeMarkets has agreed to buy certain assets of Covisint, the struggling online automotive industry services company formed by DaimlerChrysler, General Motors and Ford, Reuters reported.
 
FreeMarkets, based in Pittsburgh, will provide technology and services to the motor industry under the deal, which is due to close in early January, Reuters said, adding that terms were not disclosed.

The news agency noted that Covisint was formed by the Big Three US carmakers in February 2000, at the height of the e-commerce boom - it aimed to make it easier and cheaper to buy products by moving purchasing online though automotive suppliers and carmakers were both wary of embracing the system.

Reuters said Covisint will transfer its customer contracts for auction services to FreeMarkets, which will provide committed revenue to FreeMarkets over the next three years, while FreeMarkets will hire select Covisint auction services employees as part of the deal.