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Verticalnet Inc. (Nasdaq:VERT) was a "provider of On-Demand Supply Management solutions to companies ranging in size from mid-market to the Global 2000" and host of business-to-business (B2B) procurement portals ("B2B hubs"). Founded in 1995 and headquartered in Malvern, PA, Verticalnet became famous during the Dotcom bubble for its US$12 Billion valuation in early 2000, at a time when the company had few tangible assets and a revenue stream of only US$112.5 million. At the peak of its valuation, VerticalNet operated a few B2B portals, plus more than 50 Internet business-to-business trading communities as well as professional communities.
In 1999, the company lost US$53.5 million on revenues of 18.4 million. In 2000, revenues increased to sixfold to $112.5 million, but losses multiplied equally, resulting in $311.3 million negative net income that year. Despite claims by Verticalnet CEO Mark Walsh that the company would become profitable by Q2 2001, profitability was never achieved.
VerticalNet (NASDAQ: VERT) has sold its Small and Medium Business Group to Corry Publishing, now Jameson Publishing, for a cash 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. Jameson Publishing is a business media company that publishes magazines, email newsletters and buyers guides for Enterprise IT professionals. The Jordan, Edmiston Group represented VerticalNet in this transaction. VerticalNet is now VertMarkets and owns many of the largest industry sourcing websites such as www.pharmaceuticalonline.com, www.bioresearchonline.com and www.wateronline.com.
- CNet News