!!!!!!!!!!!!!!! NEWS !!!!!!!!!!!!!!!!!!!!!!!!!!
MONTREAL, Dec. 8 /CNW/ - SureFire Commerce Inc. (TSE: MTP), an emerging
leader in online transaction processing and e-commerce, today announced that
it has entered into a letter of intent to acquire 100% of Stumpworld Systems,
Inc., a leading Boston, Massachusetts-based e-commerce company, which includes
its online shopping portal, BuyItOnline.com, and its store creation software
platform, Online Merchant(TM) (onlinemerchant.com). Established in 1993,
Stumpworld's e-commerce solution has most recently been featured on CNBC and
in the New York Times.
Stumpworld is an Internet ``e-tailing' pioneer specializing in enabling
businesses and retail merchants to sell their goods and services online. The
company has created a unique environment at BuyItOnline.com, catering to a
mass market of small- and medium- sized merchants. BuyItOnline.com offers a
multitude of features designed to simplify the lives of both consumers and Web
merchants, including proprietary consolidation and deconsolidation functions
allowing customers to shop at multiple independent stores in a single shopping
session using a single shopping cart. BuyItOnline.com also offers toll-free
customer service, secure transaction processing, shipping consolidation,
personalization services and promotional programs aimed to attract and retain
loyal customers.
The BuyItOnline.com portal community currently hosts more than 200
individual stores and has hundreds of additional merchants queued to come
online. Stumpworld also boasts as clients such well-known entertainment
properties as, Aerosmith, Phish and The Rolling Stones, as well as such
corporations as Media One, Sony Music, NYNEX and The Woolworth Corporation.
Under the terms of the letter of intent, SureFire Commerce will issue
13.5 million shares in payment for the shares of Stumpworld. The closing of
the transaction is subject to various conditions and regulatory approvals and
is expected to occur in the first quarter of 2000.
``This acquisition is the final phase of the implementation of our
corporate strategy of offering true end-to-end e-commerce solutions to small-
and medium- sized merchants, and is a first major step toward the
proliferation of our presence into the United States,' stated Rory Olson,
President and C.E.O. of SureFire Commerce.
``With the acquisition of Stumpworld, SureFire Commerce is acquiring
leading edge technology and a high profile and successful portal. SureFire
Commerce can now offer small- and medium- sized merchants and businesses a
suite of proprietary services which includes a web storefront, transaction
processing and affiliated marketing services, all residing in a proprietary
Internet-based secure environment and supported by a 24/7 help desk,' Olson
continued.
As a result of this transaction, SureFire Commerce expects to earn
revenue from software sales, monthly hosting fees from merchants, a percentage
of gross sales from each store, as well as fees from merchants using the
proprietary online coop advertising, couponing and affiliate marketing
programs. ``These revenue streams are consistent with our business model of
recurring and incremental revenue,' commented Olson.
``We are elated to be joining the SureFire Commerce family,' said
Michael Clebnik, C.E.O. of Stumpworld. ``The synergies between the two
companies from a product, services and management perspective create a
formidable global force in the e-commerce enabling space. We see great
strength in being able to offer a total end-to-end solution to merchants and
businesses, and SureFire Commerce has all of the elements and expertise to
implement these solutions,' concluded Clebnik.
Stumpworld develops and distributes Online Merchant(TM) directly through
major U.S. retailers such as Staples, Comp USA and OfficeMax. The Online
Merchant(TM) software was the only winner of both Internet World's 1998 Four
Star Rating and PC Computing's Four Star Rating for store building software.
It was also a finalist in the highly regarded PC Computing MVP Awards
recognizing the most outstanding business computing products for 1998. The
GOLD version of the software, slated for release in January 2000, has already
booked 20,000 advanced orders.
According to Forrester Research, there are over 10 million domestic
small- to medium- sized merchants who are potential participants in online
commerce, but who lack access to an affordable and effective range of software
and back-end e-commerce tools. Moreover, virtual communities are the fastest
growing content segment of the Internet today, and currently represent over
80% of consumer ``page views' on the Internet. Internet purchasing, also
known as e-commerce, has been categorized by Forrester Research as ``the $300
billion stealth market'.
``The growth opportunities in the North American market are tremendous,'
commented Olson, ``and the global opportunities are even more impressive.
Merchant enabling is a primary focus of our company and proprietary solutions
like Stumpworld's, coupled with our transaction processing capability,
position SureFire Commerce on very solid ground in this burgeoning and global
market,' concluded Mr. Olson.
SureFire Commerce Inc. offers businesses end-to-end electronic commerce
solutions using proprietary technology in the areas of transaction processing,
merchant enabling. The Company's shares trade publicly on The Toronto Stock
Exchange.
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For further information: Mark Krakower, Senior Vice-President, Corporate
Affairs, (514) 848-0803 ext. 203, E-Mail: krakowerm@microtempus.com; Rick
Leckner, Maison Brison, (514) 731-0000, E-mail: brison1@maisonbrison.com |
