in the wires... --CMGI announces definitive agreement to acquire uBid.com
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amein
(UBID) CMGI To Acquire uBid.com; CMGI to Expand B2B Focus While Driving
RELATED SYMBOLS: (MTHR)(CPTH)(ENGA)(MALL)(SILK)(NAVI)(UBID)(LCOS)
(CMGI)
ANDOVER, Mass. and CHICAGO, Feb 10, 2000 (BUSINESS WIRE) --
Editor's Summary:
--CMGI announces definitive agreement to acquire uBid.com in an
all-stock transaction valued at approximately $407 million
--CMGI to accelerate uBid.com traffic growth, revenue streams by
maximizing synergies with existing network properties such as
MyWay.com, iCAST, yesmail.com(1) and AltaVista, and enhance inventory
management and product fulfillment services through SalesLink
--uBid.com to contribute industry-leading capabilities in online
merchandising and inventory management for growth of CMGI-affiliated
e-commerce properties
--Acquisition expected to close in May 2000, following shareholder and
regulatory approvals
CMGI, Inc. (Nasdaq: CMGI), the world's largest and most diversified
network of Internet companies, announced today that it has signed a
definitive merger agreement to acquire uBid.com (NASDAQ: UBID), a
leading e-commerce auction site, in a stock-for-stock merger
transaction valued at approximately $407 million. Under the terms of
the merger agreement, CMGI will issue .2628 CMGI shares for every share
of uBid.com held on the closing date of the transaction. Closing of the
transaction, expected in May of 2000, is subject to customary
regulatory approvals, including formal approval by uBid.com
shareholders. Upon closing, uBid.com will become a majority-owned
operating company of CMGI.
uBid.com, the Internet leader in business-to-consumer auctions,
operates a thriving online auction marketplace offering brand-name
products to both consumers and businesses. uBid.com provides consumers
the opportunity to set their own prices on popular products at
significant discounts to those found in traditional channels. In
addition, uBid.com auctions provide leading suppliers such as Sony,
IBM, Hewlett Packard, Canon, Epson, and Harmon Kardon, with an
inexpensive and highly efficient channel for selling excess or unique
items on a timely basis, while preserving their existing distribution
channels.
uBid.com's auctions feature a rotating selection of brand name items in
12 categories or "stores": computers; monitors, printers and more;
consumer electronics; home & leisure; sports ad recreation; jewelry &
gifts; off-lease computers; clothing and apparel; home improvements;
art; appliance; and travel and events.
To help accelerate uBid.com's already impressive growth and revenue
performance, upon closing of the transaction CMGI intends to exploit a
number of highly synergistic opportunities with other companies now in
the CMGI network. These include several opportunities with both
business- to-consumer (B2C) and business-to-business (B2B) e-commerce
companies that can distribute inventory through uBid.com. Additionally,
CMGI expects to integrate uBid.com's auction and merchandising
capabilities into the enterprise arena through its extensive network of
business-to-business affiliates, such as CMGI Solutions and MyWay.com.
CMGI also intends to leverage its existing network of sites to drive
increased traffic, as well as apply the strengths of its marketing and
advertising properties, such as Engage and yesmail.com(1), to help
uBid.com more effectively monetize its site traffic and mine its
growing database of more than a million registered users.
"Online auctions, both B2C and B2B, are one of the fastest-growing
areas of the Internet, and uBid.com has distinguished itself in the
market with highly differentiated merchandising and inventory
management capabilities that will prove hugely valuable as this model
scales for the future," said David Wetherell, Chairman and CEO, CMGI.
"We believe there's tremendous opportunity in applying these techniques
to CMGI's existing e-commerce companies, and in building aggressively
to extend these technologies into the emerging B2B marketplace through
licensing and other channels."
"Joining the CMGI network of companies will allow uBid.com to more
rapidly and more efficiently expand our unique merchandising model in
both the B2B and B2C market segments," said Greg Jones, Chairman and
CEO of uBid.com. "In addition to greatly increasing our reach in the
consumer marketplace, the vast array of partnership opportunities with
CMGI network companies will lead to new sources of unique merchandise,
as well as powerful new distribution outlets for our auction technology
platform."
uBid.com was founded in April of 1997 by Creative Computers to
facilitate the movement of excess and refurbished inventory through the
online commerce channel. The company was later incorporated in 1997 and
became listed on the Nasdaq exchange through an initial public offering
on December 4, 1998.
About CMGI and CMGI @Ventures
With more than 60 companies, CMGI, Inc. (Nasdaq: CMGI) represents the
largest, most diverse network of Internet companies in the world. This
network includes both CMGI operating companies and a growing number of
synergistic investments through its venture capital affiliate, CMGI
@Ventures. CMGI leverages the technologies, content and market reach of
its extended family of companies to foster rapid growth and industry
leadership across its network, and the larger Internet Economy. Compaq,
Intel, Microsoft, Pacific Century CyberWorks and Sumitomo hold minority
positions in CMGI.
CMGI's majority-owned operating companies include Engage Technologies
(Nasdaq: ENGA), NaviSite (Nasdaq: NAVI), 1ClickBrands, 1stUp.com,
Activate.net, AdForce, Adsmart, AltaVista, CMGI Solutions, Equilibrium,
Flycast, iCAST, Magnitude Network, MyWay.com, NaviNet, SalesLink,
Tribal Voice and ZineZone. The company's venture capital affiliate,
CMGI @Ventures, has ownership interests in Lycos, Inc. (Nasdaq: LCOS),
Critical Path (Nasdaq: CPTH), Silknet (Nasdaq: SILK), Chemdex (Nasdaq:
CMDX), MotherNature.com (Nasdaq: MTHR), Asimba.com, AuctionWatch.com,
Aureate Media, blaxxun, BizBuyer.com, Boatscape.com, buyersedge.com,
CarParts.com, CraftShop.com, eCircles.com, eGroups.com, EXP.com,
FindLaw, FoodBuy.com, Furniture.com, Gamers.com, Half.com, HotLinks,
Industria, INPHO/HomePriceCheck.com, Intelligent/Digital,
KnowledgeFirst, KOZ.com, Mondera.com, MyFamily.com, NextMonet.com,
NextOffice.com, NextPlanetOver.com, Oncology.com, OneCore.com,
PlanetOutdoors.com, Productopia, SnapFish.com, Speech Machines,
ThingWorld.com, Vicinity, Virtual Ink, Visto, Vstore and WebCT.
CMGI and CMGI @Ventures Corporate headquarters are located at 100
Brickstone Square, Andover, MA 01810. Telephone: 978-684-3600. Fax:
978-684-3814. CMGI @Ventures also has offices at 3000 Alpine Road,
Menlo Park, CA 94028; 650-233-0333. Additional information is available
on the company's Web sites at cmgi.com and
ventures.com.
About uBid.com
uBid.com is a leading online auction and e-commerce site offering
brand name products to consumers and businesses through live-action
bidding using sophisticated auction technology. The company's Internet
auctions feature a rotating selection of brand-name computers, consumer
electronics, housewares, sporting goods and memorabilia, jewelry,
apparel, appliances, art, travel and events, home improvement products,
and off-lease computer equipment. Industrial and manufacturing
equipment is also available at www.srauction.com and www.ironmall.com.
uBid.com is committed to providing all customers with the
highest-quality auction experience on the Internet and offers supplier
warranties on most consumer products. uBid.com also meets Better
Business Bureau Online standards, which give customers the confidence
and security to bid safely online.
uBid.com, with headquarters in Illinois, is a publicly traded company
(Nasdaq: UBID). For more information, visit the company's Web site at
www.ubid.com.
EDITOR'S NOTE: Executives from CMGI and uBid.com will be available to
discuss the pending acquisition on an conference call scheduled for
today at 10 AM EST. Interested parties may participate in the call by
dialing 1-800-553-5275; international callers may dial (612) 332-0530.
The conference call will also be webcast from the CMGI web site at
cmgi.com.
CMGI and uBid expect to file a proxy statement/prospectus under the
securities act of 1933 with respect to the business combination
described herein. Investors are urged to read the relevant documents
filed or to be filed with the Securities and Exchange Commission
because they contain important information. Investors may obtain these
documents for free at the web site maintained by the Securities and
Exchange commission at sec.gov. In addition, any such
documents, excluding exhibits, may be obtained from CMGI without charge
by requesting them in writing or by telephone at the following address:
CMGI, Inc.; attention: Catherine Taylor, Director of Investor
Relations; 100 Brickstone Square; Andover, MA 01810; Telephone: (978)
684-3600; cmgi.com.
This release contains forward-looking statements based on current
expectations or beliefs, as well as a number of assumptions about
future events, and these statements are subject to important factors
and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements. The
forward-looking statements in this release address a variety of
subjects including, for example, the expected benefits resulting from
the acquisition of uBid by CMGI and the expected ability of CMGI to
leverage its existing network of sites. The following factors, among
others, could cause actual results to differ materially from those
described in these forward-looking statements: the successful
completion of the acquisition of uBid; the risk that uBid's business
will not be successfully integrated with the business of CMGI; and
increased competition and technological changes in the industries in
which CMGI and uBid compete. For a detailed discussion of these and
other cautionary statements, please refer to CMGI's filings with the
Securities and Exchange Commission, including CMGI's Annual Report on
Form 10-K for the most recently ended fiscal year.
(1) On December 15, 1999, CMGI announced a definitive agreement to
acquire yesmail.com. The acquisition, subject to regulatory and
shareholder approvals, is expected to close in March 2000.
Copyright (C) 2000 Business Wire. All rights reserved.
Distributed via COMTEX.
-0-
CONTACT: For CMGI:
CMGI Public Relations
Deidre Moore, (978) 684-3655
dmoore@cmgi.com
or
CMGI Investor Relations
Catherine Taylor, (978) 684-3540
ctaylor@cmgi.com
or
For uBid.com:
Alan Taylor Communications
Bret Werner, (212) 714-1280
bret@alantaylor.com
WEB PAGE: businesswire.com
GEOGRAPHY: MASSACHUSETTS ILLINOIS
INDUSTRY CODE: INTERNET
E-COMMERCE
COMPUTERS/ELECTRONICS
CONSUMER/HOUSEHOLD
MERGERS/ACQ
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