Cable & Wireless and Internet Commerce Corporation Announce a Global Sales and Marketing Agreement
LONDON & NEW YORK--(BUSINESS WIRE)--Dec. 1, 1999--(Announced on Nov. 30, 1999) Cable & Wireless (NYSE:CWP - news), the global telecommunications group, and Internet Commerce Corporation (ICC) (NASDAQ:ICCSA - news) a pioneer in Internet e-business supply chain connectivity, today announced a strategic agreement focused on the business-to-business e-commerce marketplace.
The agreement is part of an extensive development plan that has seen Cable & Wireless successfully re-position itself as a global IP solutions provider. The company is now putting in place the services and applications that business customers are demanding, and increasing the value of the traffic being carried on the company's global IP network.
This latest development will see Cable & Wireless and ICC bundle their respective product and service offerings. Cable & Wireless' web hosting capabilities will be offered with ICC's recently announced B2B4B2C(TM) (Business-to-Business for Business-to-Consumer) web-based order fulfillment capabilities. Additionally, both companies will market ICC's CommerceSense(TM) system combined with Cable & Wireless' Internet backbone and bandwidth capabilities. Under the terms of this worldwide marketing, sales and support agreement, Cable & Wireless and ICC will begin joint marketing their services to the business-to-business e-commerce community in countries served by Cable & Wireless.
ICC's Internet-based CommerceSense network provides broad business-to-business connectivity, and translates, archives and delivers data to trading partners in any format or platform needed. The system provides security, encryption and reporting features, and it is ideal for managing large-scale, mission critical documents and large files. The system uniquely supports both the existing standards for business-to-business Electronic Data Interchange (X12, EDIFACT), as well as the leading edge Internet technologies of XML, HTML and Java. The benefits of this architecture include: 1) the protection of legacy system investments; 2) significant, immediate increase in trading community supply chain connectivity; 3) the achievement of this connectivity at unprecedented low prices.
Mike McTighe, CEO of Cable & Wireless Global Operations, said, ''This partnership with ICC is consistent with our global business-to-business strategy, and will allow Cable & Wireless to increase the already substantial value proposition of its ISP and web hosting offerings. By integrating ICC's security, data translation, archiving and real-time data management capabilities. These combined offerings bring to market for the first time the ability for businesses to seamlessly connect to their global trading partners over Cable & Wireless' Internet backbone. We are creating a frictionless marketplace.''
''In recent weeks we have announced brand new web hosting facilities, a new high speed IP access service, a web content distributor that further boosts Internet trading, and our partnership with Compaq. Today's announcement moves our strategy even further forward, and demonstrates our understanding of the needs of the global IP and e-commerce marketplace,'' he added.
ICC's President & CEO, Dr. Geoffrey S. Carroll, stated, ''Among the truly international telecommunications companies, Cable & Wireless stands out as the best. The worldwide reach of their infrastructure and sales force coupled with their international customer base allows ICC to provide its services on a consistent, scalable and supportable basis around the world.''
The two companies have already begun marketing their integrated services. Beginning in Q1 2000, the first of a series of jointly developed business-to-business value added connectivity offerings will be announced.
ICC has today a marketcap on a fully diluted basis of approximately $321 million. Cable & Wireless will invest $10 million to make them ICC's single largest shareholder. Cable & Wireless will also nominate one person to ICC's Board of Directors.
The $10 million investment entitles Cable & Wireless to 10,000 shares of a new class of convertible preferred stock of ICC that is initially convertible into shares of ICC Class A Common Stock at $22.34 per share. The average closing bid of the Class A Common Stock for the five (5) trading days before the definitive agreement was executed and delivered was $22.21. The preferred stock is entitled to a four percent (4%) cumulative, annual dividend, payable in cash or in kind at ICC's option, and votes together with the Class A Common Stock. Each share of preferred stock entitles Cable & Wireless to a number of votes equal to the number of shares of Class A Common Stock into which the preferred stock is convertible. Cable & Wireless will also receive 400,000 warrants to purchase Class A Common Stock of ICC. The warrants are exercisable for five (5) years at $22.21. In addition, Cable & Wireless will be entitled to commissions, payable in additional shares of Class A Common Stock of ICC valued at its then fair market value, if Cable & Wireless exceeds quarterly target levels of sales of ICC's products and services to be agreed upon. The closing of the transaction is subject to approvals of the boards of Cable & Wireless and ICC and is expected to occur before the end of the year.
About Cable & Wireless
With customers in 70 countries, Cable & Wireless is a major global telecommunications business with revenue of around $13 billion in the year ended March 1999 and over 50,000 employees. Its businesses around the world offer a range of services spanning broadband data and Internet services, fixed and mobile voice, as well as interactive entertainment and information. Cable & Wireless' priority for expansion is the fast growing market of data and IP (Internet Protocol) services for business customers. Since November 1998, it has announced major investments in advanced networks in the US and Europe, the restructuring of Cable & Wireless Communications in the UK and has acquired full control of Cable & Wireless IDC in Japan to support this strategy. Cable & Wireless now holds a unique position in terms of global coverage and services to business customers.
About ICC
Internet Commerce Corporation provides Internet-based e-commerce service for the business-to-business marketplace. ICC's CommerceSense system is a secure, low-cost, real-time transaction system for exchanging and managing, data, documents, electronic data interchange (EDI), graphics, audio and video for commercial trading partners of any size. ICC's system uniquely bridges legacy e-commerce investments to the Internet. The fully diluted marketcap calculation includes all the in-the-money and vested options, warrants and convertible securities including Cable & Wireless' investment.
Certain statements contained in this press release may be deemed forward-looking statements by ICC and Cable & Wireless. Such statements, and other matters addressed in this press release, involve a number of risks and uncertainties including price competition, technological advances, decreased demand or diversion of electronic data interchange or electronic commerce to other methods of telecommunication. Among the other factors that could cause actual results to differ materially from these statements and matters are the risks and other factors detailed in the ICC's Form 10-KSB for the year ended July 31, 1999 and Cable & Wireless' Annual Report and Accounts for year ended 31st March 1999.
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Contact:
Cable & Wireless
Nikki Laughlin, 703/760-1574
nikki.laughlin@cwusa.com
or
Cable & Wireless
Chad Couser, 703/760-3845
chad.couser@cwusa.com
or
Internet Commerce Corporation
Victor Bjorge, 212/271-7640
victor@icc.net
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