6309 Monarch Park Place, Suite 203
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Phone (303) 443-5060
Toll free (888) 742-5060
The deal bundles the capabilities of the two companies to now offer a suite of enterprise-wide supply management solutions including spend analysis, self-service RFX, reverse auctions, contract management, e-procurement, and supplier scorecards. In the past 3 months, Verticalnet and Tigris have announced spend analysis agreements with Cadbury Schweppes, Illinois Tool Works, and Wyeth.
Under the terms of the merger agreement, Verticalnet issued 1,870,450 shares of Verticalnet common stock plus $3.5 million in cash. In addition, Verticalnet assumed the Tigris stock option plan and issued options to acquire 751,741 shares of Verticalnet's common stock. Recognition Group, a New York based merchant bank, acted as exclusive financial advisor to Tigris. Verticalnet reported a net loss of $11 million on $9.6 million in revenues for 2003. For the quarter ending Mar. 31, 2004, Verticalnet expects revenues to be in the range of $3.8 to $4.2 million, which will include the results of operations of the acquired business from Jan. 30, 2004. For the year ending Dec. 31, 2004, Verticalnet expects revenues to be in the range of $21.0 to $24.0 million. Verticalnet now has approximately 120 employees across five locations.
A recent survey by the firm Capital Consulting & Management, Inc. (CCMI), found a compelling demand for spend analysis tools and processes. In the survey of 400 purchasing and supply management professionals, two-thirds of respondents reported that they were actively pursuing initiatives to improve spend analysis tools and capabilities. In addition, 90% of respondents indicated they expected to be performing enterprise-wide spend analyses within three years. Today, 56% of responding companies are performing spend analysis at the site or division level only.