January 31, 2001 -- The B2B arena continues to be as malleable as Silly Putty fresh from the microwave. Internet Capital Group, a B2B e-commerce company, today announced several changes to its partner company network, including the sale of Servicesoft to Broadbase Software, the sale of e-Chemicals to Aspen Technology, and the merger of two Internet Capital Group partner companies, FreeBorders and Applied Intranet Technologies.
Walter Buckley, president and CEO of ICG, offered both sides of the half-full/half-empty glass equation, proclaiming that ICG's sound strategic vision is still on target, in the same sentence that he used the all-too-common buzzwords tightening and lean." Buckley went on to say, These actions underscore ICG's focus on streamlining the network and concentrate our human and capital resources on the partner companies that we believe will bring the greatest value for the network and our shareholders.
According to ICG, the combination of Servicesoft and Broadbase Software will define a new category in the eCRM (electronic customer relationship management) market. Customers of the combined company will have, for the first time, a single, integrated and intelligent eCRM software suite that completes the loop of all customer interactions for marketing, sales and service.
ICG received approximately 1.3 million shares of Broadbase common stock for its stake in Servicesoft, which was valued at approximately $10.2 million at the close of the transaction. ICG originally paid $3.8 million for its stake in Servicesoft.
Aspen Technology's acquisition of e-Chemicals' assets allows the integrated software and solutions provider to embed e-Chemicals' technology for online sales and procurement into its Aspen Marketplace solution. This sale of assets to AspenTech follows ICG's write-off of e-Chemicals during the 3rd quarter of 2000.
Two of ICG's partner companies, FreeBorders, a leader in global supply chain technology for the apparel, textile and retail industry; and Ai, the industry's second-largest provider of collaborative product design and development applications recently merged. This consolidation will create a Web-based technology platform for members of the apparel industry to facilitate trading, development and communication at all points in the supply chain.
The combined entity is expected to bring increased organizational efficiency and profitability to the apparel industry. ICG's ownership in FreeBorders, the surviving corporation, is approximately 38 percent.