Speaking of small B2B companies...
REPEAT/eMarketplace to Acquire Five Internet Architect Firms
Business Wire - November 15, 1999 14:10
SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 15, 1999--
Network of Interactive Architects Being Assembled; $26 Million in Combined Revenues; Total e-Business Solutions in Strategic Vertical Segments Now Offered
eMarketplace Inc. (OTC BB:EMKT) an Internet holding company engaged in the development and operation of a network of Internet properties, Monday announced that it and its newly-formed subsidiary, TopTeam Inc., have entered into definitive agreements to acquire five leading Internet consulting companies: Full Moon Interactive Group Inc. (http://www.fmig.com), Orrell Communications Inc. (http://www.orrellcom.com), DeVries Data Systems Inc. (http://www.dvdata.com), Muccino Design Group Inc. (http://www.muccino.com), and Image Network Inc. (http://www.Imagenetwork.com). A total of approximately 1.6 million new shares of eMarketplace stock are expected to be issued in the transactions.
In addition, pursuant to a Letter of Intent dated Sept. 7, 1999, eMarketplace and TopTeam anticipate executing a definitive agreement with a sixth company in the near future. TopTeam expects to operate the combined entity under the name Full Moon Interactive. The companies' combined areas of expertise will enable Full Moon Interactive to deliver total e-business solutions to clients that will leverage Internet technologies to improve revenue opportunities, operating efficiencies and enhance brand and competitive positioning.
The growth of the Internet has created exponential growth in demand for Internet consulting services. Industry analysts report that worldwide demand is expected to grow from $8 billion in 1998 to $33 billion in 2002.
Robert M. Wallace, chairman of the board of eMarketplace and TopTeam commented, "With 1999 calendar year revenues estimated in excess of $26 million, the company is well-positioned to participate in this industry growth, both organically and through further consolidation of select companies in the highly-fragmented field of strategic Internet consulting."
eMarketplace's five initial acquisitions are all based in Silicon Valley and Los Angeles, Calif., and serve leading companies in robust segments of the California economy. Representative customers in the five business segments served are:
High Tech: Dell, Adobe, Intel, SGI
Consumer: OralB, Production One, Sony
Entertainment: Variety, FAST TV, Universal
Bank & Finance: CALFed, City National Bank, BayView
Emerging Growth: Matchmaker.com, FAST TV, CARSDIRECT.com
Fred Walti, the current chief executive officer of Full Moon and the CEO of TopTeam following the closing of the acquisitions, stated: "The six companies that will comprise TopTeam have already had an opportunity to work together to propose new business on a scale and scope unattainable by any single company prior to consolidation, and to compete favorably against such industry leaders as Razorfish (RAZF).
"I am extremely eager to close the transactions so that we can combine all of our complementary talents and do what we do best: provide creative solutions for companies looking to expand their presence on the Internet. Together, we can harness our collective strategy, design, and technological expertise to deliver the highest caliber of service to our clients."
With more than 200 employees on a combined basis, TopTeam is positioned to become a major player in the rapidly-growing Internet consulting services industry.
TopTeam represents a significant milestone for eMarketplace in executing its plan to develop Internet businesses. In April 1999, the company acquired E-Taxi Inc., the parent corporation of TechStore Inc., an online reseller of computer hardware and software as well as certain consumer electronics products. Office Express Inc., a subsidiary of the company, commenced selling office supplies and equipment online in August 1999. Office Products are expected to become the fifth largest Business-to-Business segment on the Web, growing from a $3 billion market in 1999 to a $65 billion in 2003, according to industry sources.
About eMarketplace
eMarketplace Inc. develops, acquires and operates a network of Internet properties that provide design, content, commerce, online services and total e-business solutions to clients nationwide.
Safe Harbor Statement
Investors should carefully consider the preceding information as well as other information contained in this news release before making an investment in the company's common stock. All statements in this news release other than statements of historical fact are forward-looking statements that involve substantial risks and uncertainties. Reference is made to the company's Annual Report on Form 10-KSB for the year ended June 30, 1999, and to the company's other reports filed with the Securities and Exchange Commission for a discussion of such risks and uncertainties and other factors that may have material effect on the company's business. Other factors could also cause actual results to vary materially from the future results covered in such forward-looking statements.
CONTACT: Gateway Advisors Inc.
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