VerticalNet
 | |
| Founded | 1995 |
|---|---|
| Founder | Michael McNulty Michael Hagan |
| Fate | Acquired by Bravo Solutions (2008) |
| Headquarters | Horsham, Pennsylvania |
| Revenue |  $16 million (2006) |
| -$24 million (2006) | |
| Total assets | $20 million (2006) |
| Total equity | $2 million (2006) |
Number of employees | 88 (2006) |
| Footnotes / references [1] | |
Verticalnet, Inc. was a host of 43 business-to-business (B2B) procurement portals headquartered in Horsham, Pennsylvania.[2] At the peak of the dot-com bubble in 2000, the company was worth $10.89 billion; it was acquired by Bravo Solutions in 2008 for $15.2 million, a 99.9% decline in value.
History
[edit]Verticalnet was founded in 1995 by Michael McNulty and Michael Hagan with a site called WaterOnline.[2]
In 1997, Mark Walsh joined the company as its chief executive officer.
In 1999, on the first day of trading after its initial public offering, its shares increased in value by 180%, valuing the company at $1.6 billion; quarterly revenue was $3.6 million. The company had 1,300 advertisers, each of which were paying $6,000 per year. At that time, Internet Capital Group, now Actua Corporation, owned 28% of the company and founders Michael McNulty and Michael Hagan were each worth $60 million on paper.[2]
In 1999, the company lost $53.5 million on revenues of $18.4 million.[3]
In January 2000, the company received a $100 million investment from Microsoft.[4]
In March 2000, the company acquired Tradeum for 2 million shares of Verticalnet, worth $507 million at the time.[5][6]
During 2000, the dot-com bubble burst, and the market capitalization of the company fell from a peak of $10.89 billion on March 10, 2000 to $3.89 billion on May 4, 2000.[7]
In 2000, revenues increased to $112.5 million and the company posted a loss of $28.5 million.[7]
In December 2000, Verticalnet sold NECX, an exchange for electronic components and computer systems, to Converge for $60 million in cash and a 19.9% stake in Converge.[8]
In April 2001, Verticalnet restructured its agreement with Microsoft.[9]
In 2002, Verticalnet acquired Atlas Commerce for 14.3 million shares of Verticalnet common stock and $3.5 million of cash and the company relocated to Malvern, Pennsylvania.[10]
In 2002, VerticalNet sold its Small and Medium Business Group to Corry Publishing, now Jameson Publishing, for an up-front payment of $2.35 million and a four-year performance-based earn-out of $6.5 million, as well as the assumption of certain liabilities.[7][11]
In 2008, Bravo Solutions acquired Verticalnet for $15.2 million.[7][12][13]
References
[edit]- ^ "Verticalnet, Inc. 2006 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
- ^ a b c "Land grab". Forbes. June 23, 1999.
- ^ "VerticalNet reports loss despite revenue gains". EE Times. February 22, 2001.
- ^ "VerticalNet shares jump on Microsoft investment". CNET. January 21, 2000.
- ^ "VerticalNet to Buy Privately Held Tradeum". The New York Times. March 9, 2000.
- ^ "VerticalNet to Acquire Tradeum For About $507 Million in Stock". The Wall Street Journal. March 9, 2000.
- ^ a b c d "A Visionary Company Becomes a Trinity: The Story of VerticalNet". Jaggaer. November 19, 2020.
- ^ "VerticalNet to Sell NECX Exchange In Cash, Stock Deal to Converge". The Wall Street Journal. December 20, 2000.
- ^ Tarsala, Mike (April 26, 2001). "Microsoft gives VerticalNet $40 million". MarketWatch.
- ^ Shah, Jennifer Baljko (January 2, 2002). "Verticalnet wraps acquisition of Atlas Commerce". EE Times.
- ^ Gilbert, Alorie (July 10, 2002). "Verticalnet reaches for new markets". CNET.
- ^ "Verticalnet to be acquired by BravoSolution". Reuters. October 26, 2007.
- ^ Goldstein, Steve (October 26, 2007). "Verticalnet says being bought for $15.2 million". MarketWatch.
