Release - with backgrounder on Emergis' EBS
Bell Canada to Merge Electronic Business Unit With MPACT Immedia
MONTREAL, QUEBEC--Bell Canada and MPACT Immedia announced today
they have agreed to merge the Electronic Business Solutions (EBS)
unit of Bell Emergis with MPACT Immedia. The resulting company
will constitute a major player in electronic commerce, showing
combined annual revenue of approximately $75 million in the last
12 months. The new entity will rank among the top tier firms in
the world in terms of market reach, product capability and
financial resources.
Following the transaction, Bell Canada will assume a 65 percent
controlling interest in MPACT Immedia, in exchange for Bell
Emergis' EBS unit and a cash investment of $54 million. The
transaction is subject to shareholder and regulatory approval and
is aiming to close around August 31, 1998.
"The new company will offer customers in Canada and beyond a
uniquely comprehensive suite of electronic marketplace services",
remarked Jim Tobin, Executive Vice-President of Bell Canada and
President of Bell Emergis, who will be the Chairman of the
combined group. "This is a large, tangible step in demonstrating
Bell Canada's commitment to win through innovation. It will add
value to Bell Canada's recently announced national broadband
Internet Protocol (IP) network deployment. It unlocks the value
creation potential in Bell Emergis' rapidly growing EBS unit, and
applies Bell Canada's resources and market scope to MPACT
Immedia's distinguished record of product and market successes."
The merging entities bring complementary offerings and market
positions, with a common direction embracing the vital and
burgeoning role of the Internet in the global economy. The new
company's mission will be to offer network-centric electronic
business solutions that enable and improve customer processes by
digitizing information and transactions.
"With this transaction, we will become one of the largest
electronic commerce companies in Canada and around the world,"
stated Brian Edwards, President and CEO of the new entity. "With
the support of Bell Canada, we are now extremely well equipped to
pursue growth opportunities." Mr. Edwards added that "industry
experts estimate the electronic commerce sector will grow at an
annual rate of 100 percent in the next few years."
The new company will be led by a four-person executive committee
comprising Jim Tobin, Brian Edwards, Christian Trudeau and Rory
Olson. Christian Trudeau will serve as Executive Vice-President
and Chief Operating Officer. Rory Olson will be Executive Vice-
President, Business Development, and will provide primary
leadership on strategic operating and marketing thrusts. The new
entity will be headquartered in Montreal, with major offices in
Toronto and Ottawa, as well as Livonia, Michigan.
Bell Canada, the largest Canadian telecommunications operating
company, markets a full range of state-of-the-art products and
services to more than seven million business and residential
customers in Ontario and Quebec. Bell is a member of Stentor "
the alliance of Canada's major telecommunications companies. Bell
Canada's Web site is located at: www.bell.ca.
Bell Emergis is a division of Bell Canada. Its mission is to
create leading-edge communications and network applications, next-
generation multimedia and internetworking platforms as well as
information applications and solutions. Bell Emergis' Web site is
located at www.emergis.com.
MPACT Immedia, a worldwide leader in electronic commerce, offers
EDI Commerce, payment solutions and Internet commerce products and
services. Its advanced electronic commerce solutions enable
organizations to better compete in the global marketplace. MPACT
Immedia's Web site is located at www.mpactimmedia.com.
Backgrounder Facts About
Bell Emergis and MPACT Immedia
Bell Emergis
Bell Emergis is a division launched in July 1997 by Bell Canada.
Its mission is to create leading-edge communications and network
applications, next-generation multimedia and internetworking
platforms as well as information applications and solutions. Bell
Emergis also initiates and nurtures rapid co-development ventures
with global networking companies and Canadian entrepreneurs
regardless of their location and size.
Bell Emergis is building a fully-enabled software development and
networking environment. It is ready to contribute the power of
its unique technology and market knowledge to help create and test
the most advanced business and consumer communications services in
the world.
Electronic Business Solutions
EBS is a unit of Bell Emergis, which is focussed on developing
Electronic Business solutions and applications. EBS, one of the
leaders in electronic business in Canada, offers a complete
portfolio of electronic business solutions, including Internet,
intranet, and extranet solutions, and IP network infrastructure.
With customers such as Quebec Workmen's Compensation Board (CSST),
Quebec Health Insurance Board (RAMQ), Automotive Network Exchange
(Ford, Chrysler, GM), Toronto Stock Exchange (TSE), to name a few,
EBS is linking entire industries within electronic communities of
interest.
In order to offer end-to-end solutions, EBS created joint ventures
and alliances with leading players in the internetworking,
hardware and software industries such as Netscape, Open Market,
CGI, Intellia, Entrust, Lotus, to name a few. It also developed
business relationship with universities (University of Waterloo
and Toronto, Quebec University Consortium (NCM2)), innovators and
research facilities (CIRANO).
MPACT Immedia
MPACT Immedia, a worldwide leader in electronic commerce with
offices in Montreal, Livonia (Michigan), and Toronto, offers EDI
Commerce, payment solutions and Internet commerce products and
services. By working with strategic partners, MPACT Immedia has
developed a client list which includes many Fortune 1000
companies, as Royal Bank of Canada, Dell Computers, Bank of
America, Mercedes- Benz and British Aerospace. Its advanced
electronic commerce solutions enable organizations to better
compete in the global marketplace.
The firm has established business relationships with a number of
leading global integration companies which market MPACT Immedia
products and services to potential users. Companies such as
Logica in Europe, KCI in Korea and Transaction Systems Architects
(TSA) in the United States have installed MPACT systems worldwide.
In March 1998, MPACT Immedia announced marketing alliances with
Compaq Computer Corporation of Houston, Tex., and Microsoft
Corporation of Redmond, Wash.
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