Philadelphia January 13, 2003 Procurement services provider ICG Commerce today announced that it has closed a $35 million equity financing round. The recent round included investments from eight funds. Additionally, the provider said that Edward West, a former executive at Delta Air Lines and Internet Capital Group, has been appointed chief executive officer (CEO) for ICG Commerce.
ICG Commerce claimed the round of private equity funding it completed is nearly five times the average venture deal in 2002, citing a recent MoneyTree Survey compiled by PriceWaterhouseCoopers, Venture Economics and the National Venture Capital Association.
Institutional investors supporting the recent round included Internet Capital Group, Graham Partners, Cross Atlantic Partners, Wynnefield Capital and CIC Group. ICG Commerce said the proceeds from the funding would be used primarily for future growth and development of its suite of procurement services.
ICG Commerce also announced the appointment of West as the company's new CEO. The company said West brings insight into the economic pressures faced by senior management at large organizations to a company that focuses on reducing procurement costs for its customers.
As the former executive vice president and chief financial officer at Delta, West was a member of the company's Executive Council and had broad responsibility for all corporate and operating financial functions. West also served as the chairman of Delta Technology and as the executive-level sponsor for Delta's e-commerce strategy, providing a strong technology business perspective. Most recently, West was president and chief operating officer for Internet Capital Group, where he helped support the growth of partner companies.
"I am pleased to join an innovative and growing company that delivers significant savings and operational efficiencies for its customers," West said. He added: "There is no question that demand is rising among large corporations for new ways to drive efficiencies and effectiveness. More and more companies are looking for outside procurement services to support portions of, or all of, their procurement operations. With a well established infrastructure, ICG Commerce is well positioned to capture this large and growing market."
According to a recent study by market research firm International Data Corp., the worldwide procurement outsourcing market was approximately $5 billion in 2001 and is expected to grow at a five-year compound annual growth rate of 18 percent to over $12 billion by 2006.