| Wayne, Pa--August 09, 2006 -- Internet Capital Group, Inc. (Nasdaq: ICGE) today announced that its partner company, StarCite, Inc., and OnVantage, Inc. have entered into an agreement to merge. This merger of equals will result in the largest on-demand meetings management company in the global marketplace for meetings and events. ICG expects to own approximately 27 percent of the combined company. Additionally, ICG will designate three of the combined company's seven board seats. The transaction is expected to close in the fourth quarter, subject to customary closing conditions and regulatory approval.
The merged company will operate under the StarCite name and be based in Philadelphia. Mike Boult, the current CEO of StarCite, will be the CEO of the combined company. The merger creates a clear leader in the on-demand meetings management space. Together these companies offer a global solution that drives savings and control for clients by automating the complex workflow process inherent in meetings management.
“This merger brings together two parallel on-demand platforms providing a best practices approach to meetings management,” said Doug Alexander, Managing Director of Internet Capital Group. “StarCite and OnVantage have been separately focused on driving change in the corporate meetings and events industry, and now, together, have the opportunity to accelerate market adoption by several years in a vast and largely untapped market. At the ICG level, we view this as an exciting opportunity and important stepping stone to building and realizing significant value for our stockholders through an on-demand business that fits directly in the bull’s eye of our model.”
For 2006, on a pro forma basis the combined company expects to process over 2.5 million attendee registrations on behalf of corporations, an annual increase of 50% over 2005. Pro forma revenues for the combined company are growing at an annual run rate of over 40%, excluding any necessary adjustments for purchase accounting.
“As the largest on-demand meetings management company, the new StarCite is distinctly positioned to address the sizeable market opportunity for managing corporate meeting spend,” said Michael Boult, president and CEO of StarCite. “Driven by our combined vision and resources, we look forward to proliferating innovative solutions throughout the global corporate meetings and events industry.” |
