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Technology Stocks : VerticalNet, Inc. [VERT] -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (409)	11/3/1999 9:22:00 AM
From: craig crawford	Read Replies (1) \| Respond to of 1094

November 1, 1999 E-Commerce Strategies: Trading Hubs Gain Respect By SAROJA GIRISHANKAR internetwk.com excerpt: Meanwhile, VerticalNet, a hub that started off by offering information and a digital meeting place for nearly 51 vertical sectors, is taking the next logical step in trying to expand its revenue potential. It is developing a transactional revenue model to supplement the existing advertising model whereby Web customers do not pay and revenue is derived from the suppliers advertising their products on the site. Although VerticalNet's goal to be an intermediary in the 51 vertical segments remains, the company modified its original strategy to build its own catalog and procurement models for each of the sectors. Now the company plans to build some, partner with others in some areas, plus license its business and architectural models internationally. The company believes time to market in different segments will be critical in driving its revenues beyond last year's $4 million. "We don't expect to be end-to-end in every industry, because the reality is we can't expect to win in every market without a partner," says Mike Hagan, VerticalNet's founder and executive vice president. But, lest the market perceive this as a pullback on its strategy, Hagan says VerticalNet will push into all the vertical markets through acquisitions, partnerships and licensing arrangements. Hagan says building everything from scratch could take time, which is why they went with the multipronged strategy. Toward that end, VerticalNet recently announced a complex deal with PaperExchange that lets the two companies complement their mutual strengths to generate additional revenue. While PaperExchange users will get access to industry information and advertising that VerticalNet's Pulp and Paper Online provides, VerticalNet will take over auctions of surplus and used paper equipment on its trading platform. In addition, VerticalNet is investing an unspecified amount in Neoforma.com Inc. , an early trading hub in the medical supplies and equipment sector. VerticalNet also acquired Labx.com, an e-commerce site for lab supplies and products, for $4.8 million earlier in July. Neoforma is also expanding its reach through acquisitions into the $140 billion healthcare supplies market. It recently acquired General Asset Recovery, a healthcare auction company.