*Marketing Software Makers Kana, Silknet to Merge

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Software maker Kana Communications Inc., Redwood City, CA, and Silknet Software Inc., Manchester, NH, yesterday said they would merge in a deal valued at $4.2 billion.

Kana, which markets software solutions that e-commerce companies use for interaction with their customers, said the combination with Silknet, which markets software used in Web customization, will enable e-commerce companies to provide their customers with personalized Web interaction pages and other features.

The terms of the agreement call for each share of Silknet's common stock to be exchanged for 0.83 shares of Kana's common stock.

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