E-Commerce Leader Continues Growth with Acquisition of Strategic Sourcing
Company
LAS VEGAS (April 23, 2001)-PurchasePro (Nasdaq: PPRO), a leading enabler of
business-to-business e-commerce solutions for companies of all sizes, today
announced that it has completed its acquisition of BayBuilder, a leading
provider of self-service strategic sourcing solutions for Fortune 1000
corporations.
PurchasePro paid $8.5 million in stock and cash, significantly less than
announced earlier, for the company.
With more than 25 Fortune 1000 customers currently using the BayBuilder
solution, the acquisition strongly positions PurchasePro as a premiere
provider in the rapidly growing strategic sourcing industry, which Goldman
Sachs predicts will grow from $300 million last year to $2.4 billion in
2005.
Chris Benyo, senior vice president of marketing for PurchasePro, said,
"Companies using expensive, service-based offerings from vendors like
FreeMarkets* are asking for alternatives. We believe that BayBuilder is the
most advanced reverse auction technology in the industry. The completion of
this acquisition enables our company to rapidly attack the strategic
sourcing market and enables PurchasePro to provide businesses with the
solutions, service and price they`re requesting."
BayBuilder`s strategic sourcing solution enables trading partners to
negotiate and collaborate in order to lower costs and improve supplier
relationships on both direct and indirect goods. The solution provides
buyers and suppliers with workflow, supplier survey (RFI), e-negotiations,
reverse auctions, analytics and decision optimization tools.
"This deal is a win-win for PurchasePro, BayBuilder, and their customers,"
said Pierre Mitchell, service director, enterprise management strategies at
AMR Research, Inc. "PurchasePro has always had RFQ functionality, but picks
up real-time bidding for its corporate customers and branded marketplaces,
while BayBuilder gets access to a rich customer base."
About PurchasePro
PurchasePro (Nasdaq: PPRO), a leader in business-to-business e-commerce,
operates the PurchasePro global marketplace, encompassing more than 140,000
businesses and powering hundreds of private-label marketplaces with its
highly scalable, browser-based e-commerce engine.
PurchasePro`s solutions enable businesses of all sizes to easily buy and
sell products and services, and compete more effectively by enhancing sales
opportunities, reducing procurement costs and greatly increasing employee
productivity. PurchasePro responds to the most common corporate needs:
e-Procurement for corporate procurement, v-Distributor for online
distributors, and e-MarketMaker for Internet market makers.
The company provides extensive support and training programs. For
information, call toll free at (888) 830-4600 or in Las Vegas at (702)
316-7000 or visit www.purchasepro.com.
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NOTE TO EDITORS: PurchasePro is a servicemark of PurchasePro.com, Inc. All
other trademarks or registered trademarks are the property of their
respective owners. This press release includes forward-looking statements
which are subject to the "Safe Harbor" created by Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. These forward-looking statements (which
involve the company`s plans, beliefs and goals, refer to estimates or use
similar terms) involve certain risks and uncertainties, including the risks
and uncertainties associated with rapidly changing technologies such as the
Internet, the risks of technology development and the risks of competition
that can cause actual results to differ materially from those in the forward
looking statements. These forward-looking statements represent only the
views of certain members of management and do not necessarily represent a
consensus of all employees and managers within the company. Moreover, those
forward-looking statements are based on limited information available to us
now, which is subject to change. It should be clearly understood that the
factors and perceptions on which these forward-looking statements are based
are highly likely to change over time and that we have no current plan to
update these statements. Actual results may differ substantially from what
we say today and no one should assume at a later date that the
forward-looking statements provided herein are still valid. They speak only
as of today. For more information about these risks and uncertainties, see
the SEC filings of PurchasePro, Inc., including the section entitled
"Factors That May Affect Results" in its 10-K filing for the period ended
December 31, 2000, which is available from the company on request and on the
Internet at the SEC`s Website, www.sec.gov.
Contact:
Amy K. Agnew
Weber Shandwick Worldwide
phone: 310.407.6532
fax: 310.203.0551
1888 Century Park East
Suite 920
Los Angeles, CA 90067
aagnew@webershandwick.com
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