Apollo Management Closes Transaction - Increase Investment in Rare Medium Group Inc. to $87.0 Million
NEW YORK, June 7 /PRNewswire/ -- Rare Medium Group Inc. (Nasdaq: RRRR - news) raremedium.com, today announced that they have closed and funded a transaction under which Apollo affiliates will invest $87 million into Rare Medium which will position the company as a one-stop, national provider of venture capital, Internet solutions and professional services.
This is among the largest single private equity investments ever made in an Internet company. BEAR STEARNS & CO. INC., among other valuable partners, will participate with Apollo as principals.
Rare Medium is an Internet Solutions firm that works with clients, including Microsoft, Pfizer, Epson, General Mills, The New York Times, Merrill Lynch, Direct Web, Intel and Neiman Marcus, among other leading companies, to develop E-Commerce strategies, improve business processes, develop marketing communications and branding strategies, as well as interactive content using the Internet and World Wide Web (WWW).
''Our goal is to use this capital to continue the rapid growth of our solutions business and become the leading incubator for the best new Internet companies emerging from Silicon Alley to Silicon Valley and beyond, '' said Glenn S. Meyers, Chairman and Chief Executive Officer of Rare Medium.
He added: ''Rare Medium will be in a position to help entrepreneurs and corporations deploying Web initiatives by providing a complete package of venture capital, pace-setting Internet solutions, which we are prepared to provide to our portfolio companies in exchange for equity, and professional services support. We could not have asked for a better or more capable partner than Apollo and we believe this strategy will deliver significant value to our shareholders and those partners who join us.''
Andrew Africk, a partner of Apollo, said, ''Rare Medium is in a unique position. As one of the country's most sought after Internet solutions providers, it is at the center of what's happening in Internet development and has the management expertise, business infrastructure and technical knowledge to capitalize on it. We look forward to working with the Company and assisting it in the execution of its strategy. Moreover, we believe Apollo's experience and relationships will significantly leverage Rare Medium's access to capital, deal flow and profile within the investment community.''
Apollo will be Rare Medium's largest single shareholder following the close of its investment.
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