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Enron Mail |
o YourEnergySource Buys Stake in B2B Marketplace CheMatch.com
HOUSTON -- CheMatch.com, a business-to-business Internet-based marketplace for buyers and sellers of bulk commodity chemicals, plastics and fuel products, and YourEnergySource, a wholly owned subsidiary of Aquila Energy Corp., announced that YourEnergySource has made an equity investment in CheMatch.com. Last month CheMatch laid off eight employees but said at the time it expected more funding. The two companies also formed a strategic alliance which enables CheMatch.com customers to negotiate for power and natural gas contracts online on YourEnergySource's RFP Marketplace. YourEnergySource operates a digital energy marketplace. CheMatch is backed by Battery Ventures, Bayer, Computer Sciences Corp., E.E. DuPont de Nemours & Co., Methanex, Millennium Chemicals, H. Muehlstein & Co., Reed Elsevier, Sprout Group, Stolt-Nielsen, and TownsendTarnell. http://www.chematch.com/ http://www.yourenergysource.com / _____________________________________________ o InfrastructureWorld.com Names Ex-Forbes Head Vice Chairman SOUTH SAN FRANCISCO, Calif. -- InfrastructureWorld.com, a business-to-business Internet portal that links sponsors, developers, and service providers of infrastructure projects worldwide, said it has appointed former Forbes Publisher Jeffrey M. Cunningham as its vice chairman. Mr. Cunningham is currently senior managing partner at Internet Finance Partners, as well as a former president of Internet Media Group at CMGI. InfrastructureWorld.com is backed by International Finance Corp., the investment arm of the World Bank and Bechtel Enterprises Holdings. http://www.infrastructureworld.com/ _____________________________________________ o Ventro shutting down two b-to-b marketplaces Ventro (VNTR) is shutting down its two wholly owned b-to-b marketplaces -- Chemdex and Promedix-- after efforts to find buyers failed, the company disclosed today. The beleaguered operator of online marketplaces, which had previously disclosed efforts to sell Chemdex and Promedix as part of a broader corporate restructuring, said today that those efforts had failed, forcing today's actions. The shutdowns will begin Dec. 31 and will force Ventro to fire about 235 workers. The company expects to record aggregate restructuring charges of about $380 million to $410 million in its fiscal year-end results in connection with the closures. Ventro shares were trading up 62 cents to $2.50 in midday trading today. Chemdex operates an online marketplace for the life sciences industry, while Promedix is a marketplace focused on high-end medical equipment. Over the past six months, Ventro has struggled to convince buyers and sellers to conduct business through these marketplaces, leading to disappointing financial results and a steep drop in the company's stock price. In October, Ventro CEO Dave Perry announced plans for a major restructuring, which would involve selling off stakes in the company's marketplaces, and transform the company into a provider of services for b-to-b marketplaces. But sources familiar with Ventro's restructuring plans say efforts to sell Chemdex and Promedix fell on deaf ears from potential suitors because the company could not overcome two big hurdles. First, potential buyers were turned off by the poor performance of the two marketplaces. Second, and more importantly, Ventro was pushing unattractive sale terms, sources say, including a requirement that any marketplace buyer enter into a long-term services contract with Ventro estimated to be worth between $10 million and $20 million a year. "This was a big hurdle for buyers," a source familiar with the Ventro's sale efforts said. "No one wanted to pay for the marketplaces, then be forced to hire Ventro to run them." Ventro executives are holding a conference call later today to discuss this announcement; it is expected that executives will push the positive of the shutdowns. Ventro says that future cash outlays for operating activities will be reduced by 50 percent after Chemdex and Promedix are shuttered, which should put Ventro on a stronger financial footing as it struggles to survive. ________________________________________________________ o Providence Equity Partners Raises $2.8 Billion Fund PROVIDENCE, R.I. -- Providence Equity Partners, a private equity investment firm with offices in Providence, R.I., and London said it closed a $2.8 billion Fund IV in November. The fund was raised from the firm's existing limited partners. Focusing on telecommunications and media companies, Providence Equity Partners will commit between $25 million and $200 million to each of its portfolio companies and will invest across all development stages. Its past private equity investments include Mpower Communications, Tele1 Europe Holding A.B., Verio, Brooks Fiber Properties, and Western Wireless. http://www.provequity.com/ _____________________________________________ o Insight Capital Partners Raising $750 Million Fund NEW YORK -- At an industry conference in New York, Jerry Murdock, co-founding partner of Insight Capital Partners, said the firm was raising its fourth fund, worth $750 million. A spokesperson for the firm said that the fund's final closing is slated for early next year, and it has already begun deploying the funds. Details about the investments weren't disclosed. http://www.insightpartners.com/ _____________________________________________ o Wireless ASP GiantBear Secures $25 Million in Series B WHITE PLAINS, N.Y. -- GiantBear, a wireless application service provider, said it has secured $25 million in its Series B round of funding led by First Union Capital Partners that included previous investors, Thomas H. Lee Partners and Blackstone Capital Partners. The company said it will use the funds to develop its technology and expand market reach. Sean Smith of First Union Capital Partners will join GiantBear's board of directors. http://www.giantbear.com/ _____________________________________________ o Consulting Firm Quidnunc Lands $14.5 Million in Round Two NEW YORK -- Quidnunc, an international digital business consulting firm, said it has secured $14.5 million in its second round of funding led by Barclays Ventures. The round also included Weston Presido Capital, Goldman Sachs Private Equity Partners, and Pi Capital. The company said it will use the funds to develop its international infrastructure. The company raised $15 million in its first round over a year ago. http://www.quidnunc.com/ _____________________________________________ o Platform Developer Advent Has $22.6 Million Round Two AUSTIN, Texas. -- Advent Networks, which is developing a platform for high-bandwidth delivery, said it has secured $22.6 million in its second round of funding led by UtiliCorp United, an energy company. Other investors include Southern Union Company, which already holds an 11% stake in Advent, Motorola, Reliant Energy, Murphree Venture Partners, and Morgan Keegan & Co. The company said it will use the funds to develop its technology. http://www.adventnetworks.com/ _____________________________________________
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