VerticalNet

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Verticalnet Inc. was a host of 43 business-to-business (B2B) procurement portals headquartered in Horsham, Pennsylvania.[1] It was famous for its market capitalization of $10.89 billion on March 10, 2000, during the dot-com bubble,[2] despite sales of $112.5 million in 2000.[3] Verticalnet was acquired by Bravo Solutions in 2008 for $15.2 million.[4][5]

History[edit]

Verticalnet was founded in 1995 with a site called WaterOnline.[1]

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, despite only having $3.6 million in quarterly revenue.[1] 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.[1]

In 1999, the company lost US$53.5 million on revenues of $18.4 million.[6] In 2000, revenues increased to $112.5 million and the company posted a cash loss of $28.5 million.[3]

In January 2000, the company received a $100 million investment from Microsoft.[7][8]

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.[2]

Despite claims by Verticalnet CEO Mark Walsh that the company would become profitable by Q2 2001,[9] profitability was never achieved.

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 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.[11]

In 2008, Bravo Solutions acquired Verticalnet for $15.2 million.[4][5]

References[edit]