ICGE news......CG takes majority stake in software firm
By Reuters
Special to CNET News.com
March 8, 2000, 5:35 p.m. PT
Internet Capital Group, a venture firm that invests in Web companies, said today it
would buy a majority stake in privately held software firm RightWorks for $657 million
to fortify its position as a leading provider of online marketplaces.
Internet Capital said it would pay $635 million in stock and $22 million in cash for the
undisclosed stake in RightWorks, which makes software that powers online marketplaces for
businesses such as VerticalNet.
Officials of Internet Capital and RightWorks, which is based in San
Jose, Calif., were not available for comment. Internet Capital, which
is based in Wayne, Pa., will issue around 4.5 million shares for the
stake, based on the company's closing stock price Tuesday of
$141.05.
"We believe RightWorks has the best technology on the market
today for enabling online trading communities," said Mary
Coleman, Internet Capital's managing director of operations.
Internet Capital, founded in 1996, has bought companies that bring
together buyers and sellers on Web-based marketplaces for the
exchange of goods and services. It also has acquired software and
service providers that enable these business-to-business Web sites
to operate. |
