Goldman invests in online auctioneer FreeMarkets
biz.yahoo.com
PITTSBURGH, April 22 (Reuters) - FreeMarkets Online Inc., a private firm that helps companies set up Internet auctions, said on Thursday it received $11 million from a group of investors led by investment bank Goldman Sachs & Co. (GS - news).
Goldman's $7 million investment in FreeMarkets marks the latest equity stake the Wall Street firm has taken in an online venture. Goldman last month shelled out around $20 million for a 22-percent stake in online investment bank Wit Capital and previously took minority stakes in electronic trading systems Archipelago, Optimark and Brokertec.
FreeMarkets, founded in 1995, also received $4 million from two investment companies, Birchmere Investments of Pittsburgh and Saturn Capital of Boston, and a number of private investors. The company, which employs 189, has raised $24 million so far, including the latest investment, said spokeswoman Karen Kovatch.
FreeMarkets, which has large companies such as United Technologies Corp. (UTX - news) on its client roster, helps companies set up online auctions for supply contracts. The firm last year conducted auctions for some $1 billion worth of supply contracts, which saved its clients $100 million, according to a statement. |
