e-commerce group inc. Acquires Sports Fitness & Leisure Ltd.
Acquisition Represents e-commerce's First Move Into European E-Commerce Market
LONDON, July 19 /PRNewswire/ -- e-commerce group, inc. (OTC Bulletin Board: ECGM) ("e-commerce" or the "Company"), today announced that it has acquired Sports, Fitness & Leisure Limited (SFL) of Ampfield, Hampshire, England, a financial services marketing e-commerce portal. SFL presently focuses on marketing 'stakeholder' pensions to employers in partnership with The Prudential Assurance Company Limited. The acquisition represents the first stage in the strategic business development of e-commerce group, inc. and its entrance to the European market.
SFL intends to become the dominant UK portal serving the lifestyle, financial and health needs of small and medium-sized businesses in the sports, fitness and leisure industries and their employees. SFL's first significant offering to its members will be a form of stakeholder pension plan, which will become compulsory for all UK employers employing more than five persons beginning in October 2001. Since its formation, SFL has worked closely with government and industry leaders in structuring the reform of social security systems and in particular the introduction of stakeholder pensions. Since 1996, Richard Nichols, Managing Director of SFL, has worked closely with the CATO Institute in the field of world-wide welfare reform and the process of pension reform. Their foresight and vision will give SFL a leading role in the provision of the new pensions once the new policy comes into effect in April 2001. e-commerce and SFL believe that a significant portion of membership in such schemes will result from Internet based applications such as those developed by SFL. e-commerce plans to secure a dominant position in the UK pensions market in alliance with UK pensions giant, The Prudential Assurance Company Limited.
Under the terms of the acquisition agreement, e-commerce acquired all of the outstanding stock of SFL for 385,000 shares of e-commerce common stock (valued at approximately US$1,235,000). The Company also has an obligation within the next 12 months to either pay US$350,000 in cash or to deliver a further 107,700 shares of its common stock. e-commerce will use the purchase method of accounting for this acquisition and will evaluate in-process research and development to determine the extent of any one-time charge to be taken against income for U.S. GAAP purposes. Additionally, e-commerce anticipates taking a one-time restructuring charge.
"The acquisition of SFL represents a significant step in the development of our strategy to address large market opportunities world-wide with highly scaleable B2B and B2C software engines and business processes," said Tony Arnold, President and C.E.O. of e-commerce group, inc. "The continuing development of the SFL business model, under the direction and support of e-commerce group, inc. and in partnership with Prudential, provides us with the opportunity to develop leading-edge internet-based sales and marketing processes to support the on-line sales of financial services products to the small to medium size enterprises (SMEs) and their employees. It also gives us an excellent foundation to develop other membership and affinity-based services and vertical applications for the broader SME B2B market."
On completion of the acquisition, Richard Nichols, Managing Director of SFL commented, "I am extremely pleased to join with e-commerce group, inc. As part of the group, we can solidify our business strategy and help change the future of financial services and the look of on-line membership structures."
Following the completion of the acquisition, Richard Nichols, Managing Director of SFL has been appointed a member of the Board of Directors of e-commerce group, inc.
About e-commerce group inc.
e-commerce group, inc., is an information technology company focussed on developing worldwide B2B and B2C markets. Incorporated in the US and headquartered in the UK, its initial operations are being deployed in the UK commencing with the acquisition of SFL. It intends to extend operations to the US and throughout the EU. The Company continues to seek acquisitions, mergers or partnerships with key related businesses to support the development of its corporate objectives and is seeking additional funds through either debt or equity financings in order to finance the purchase of SFL and provide working capital. There can be no assurance that any such financings will be obtained.
Forward-Looking Statements.
This release contains forward-looking statements, including statements about the Company's plans, objectives, expectations and intentions and the financial and other contributions expected from the acquisition of SFL. Actual results may be materially different than those anticipated in these forward-looking statements. Factors that could cause actual results to materially differ include known and unknown risks, including, without limitation, the early stage of the business-to-business e-commerce market, the Company's ability to manage its growth, the ability of the Company to develop and successfully market new products, the Company's ability to successfully integrate the operations of SFL, the continuation of SFL's alliance with Prudential, the retention of key technical and other personnel, rapid technological change and intense competition, as well as other risks set forth in the Company's filings with the U.S. Securities and Exchange Commission. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstance on which any such statement is based.
CONTACT: Mr. James Neil, Director of Investor Relations, North American investors, 877-341-1411, or UK investors, 08000-285-663, or investor@e-com-group.com
SOURCE e-commerce group, inc.
CO: e-commerce group, inc.; Sports, Fitness & Leisure Limited
ST: England
IN: CPR MLM FIN
SU: TNM
07/19/2000 09:00 EDT prnewswire.com |
