Peapod Spins Off Split Pea Software to FacilitateRapid Growth of Licensing Business
SKOKIE, Ill., Jan. 14 /PRNewswire/ -- Peapod, Inc. (Nasdaq: PPOD), the nation's leading Internet grocer, today announced that it has concluded a restructuring transaction in which it consolidated its licensing business into the newly-formed Split Pea Software, Inc. (Split Pea), and spun-off majority ownership of the new company.
During the fourth quarter of 1998, Peapod completed the installation of its Internet grocery shopping and delivery systems under its license agreement with Coles Myer Ltd. and entered into further agreements to develop additional enhancements. Coles Myer Ltd. is Australia's largest retailer. Following this milestone, on December 31, 1998, Peapod concluded its restructuring transaction.
In the transaction, Peapod assigned to Split Pea certain technology rights, including the perpetual license of Peapod's online grocery shopping and delivery systems. These systems include its server-based shopping application, together with certain business systems such as fulfillment management, product database administration, customer support, and Peapod's one-to-one content targeting engine. Peapod also transferred ownership of its Solana Remote Framework (SuRF(TM)) core technology and WinSurfer(TM) application controls. SuRFfacilitates the development of desktop applications that are 100% server-based, and delivers high performance application processing over the Internet's narrow bandwidths and conventional modem speeds. SuRF and WinSurfer represent significant technological advancements, and were incorporated into Peapod's version 5.0 shopping application.
Split Pea will seek to build on the success of the Coles Myer relationship by aggressively licensing its industry-leading Internet grocery shopping systems. Its marketing efforts will focus both internationally and domestically, and will include other markets requiring high-sku, data-intensive e-commerce systems. Additionally, Split Pea will pursue licenses of its SuRF technology for multiple consumer and business-to-business applications, and will provide custom development for Internet services.
John C. Walden, Peapod's Chief Operating Officer, commented "This transaction should benefit Peapod in several ways. First, we have built significant value in our systems that we believe can be exploited and generate meaningful future value. Split Pea, as an independent entity, now has the flexibility to invest and grow without constraints that may exist as a part of Peapod. More importantly for Peapod, the new structure allows the Company to concentrate its resources on its core Internet grocery business. This added focus will be critical during 1999 as we seek to prove the viability of our new, centralized fulfillment model, and position the company for aggressive national expansion."
Split Pea has appointed John B. Burchard, formerly Vice President of Sales and Service for Peapod's licensing business, as President of Split Pea Software, Inc. Mr. Burchard noted, "With industry-leading software systems, and a strong team of management, technology development, sales and support personnel, Split Pea is well positioned to capture many exciting opportunities in the Internet commerce marketplace. We are excited by the challenge, and look forward to creating enhanced value for Peapod and our other partners."
A group of the new Company's senior managers hold majority equity ownership of Split Pea, while Peapod owns a minority interest along with certain promissory and convertible notes from Split Pea. To fund future growth, the new entity is likely to pursue additional private financing from strategic or financial partners.
Peapod, Inc. (www.peapod.com) is the leading Internet supermarket, providing consumers with broad product choices and local delivery services. The Company currently provides such services in eight metropolitan markets in the United States and serves over 98,000 members. Peapod is also a leading provider of targeted media and research services to consumer goods companies, offering its unique medium for targeting promotions and advertising at the point of purchase and conducting cost-effective research.
SOURCE Peapod, Inc.
CO: Peapod, Inc.; Split Pea Software, Inc.
ST: Illinois
IN: MLM
SU: RCN
01/14/99 09:29 EST prnewswire.com
|
