Internet Capital Group To Acquire Stake In eCredit.com12:32 PM EST Fri. Feb. 25, 2000
Internet Capital Group Inc. is adding another Internet site to its existing arsenal of business-to-business e-commerce portfolio.
Internet Capital said it has agreed to acquire an interest in online financing site eCredit.com Inc. for $450 million.
Internet Capital stands to own 30 percent of eCredit.com, once the transaction is completed within the next 45 days, said Peter McKay, chief executive of eCredit.com.
The Dedham, Mass-based company is one of 50 companies Internet Capital has compiled in its portfolio of e-commerce businesses in an attempt to build a dominant business-to-business e-commerce network of companies across the top 50 global markets, said Internet Capital executives.
The company already has stakes in Onvia.com Inc, Bidcom, Inc and eChemicals Inc., among others.
"[Internet Capital] has identified 40 to 50 different vertical markets and has sought acquisition to fill those vertical markets, what they also provide is companies like eCredit which provides a horizontal focus to that vertical market that can allow them to do the realtime credit and the realtime financing," McKay said.
The synergy between eCredit.com and ICG led to discussions of a long-term partnership, after the companies began discussions last November, McKay said.
The agreement allows eCredit.com to assist Internet Capital in its portfolio of companies as far as growth, and it also allows the company to expand much faster on a global basis, McKay said.