MarchFirst Inc. will spin-off a new firm focused on the e-marketplace later this month.
The Chicago-based integrator, formed from the merger of USWeb/CKS and Whittman-Hart Inc., is launching MarketsWork Inc., a new company providing b-to-b Web solutions.
MarketsWork was created by six former MarchFirst partners who have worked with various Global 500 companies. MarchFirst will have a minority interest in MarketsWork and has inked a multimillion dollar contract to be the company's exclusive Web solution provider.
MarketsWork, New York, is launching a network of vertical marketplaces that target markets such as commercial printing, contract labor and telecommunications.
"Indirect goods and services involve complex, data-intensive transactions that are very difficult to record and analyze," said Arnab Gupta, chairman of MarketWorks, in a statement.
MarketWorks will differentiate itself by combining technology with deep industry-specific knowledge, Gupta said.
MarketWorks has secured more than $50 million in financing and currently is raising additional capital, the firm said. Willis Stein & Partners, Chicago, is the primary investor.
MarchFirst has experience in launching spin-offs. When it was known as USWeb, the integrator spun-off venture construction firm Intend Change. More recently, it launched Blue Vector, a company that invests in and partners with companies embracing e-business.
Shares of MarchFirst were down $2.31 to $21.63 in midafternoon trading Friday.
