Further extends e-commerce support among small to mid-sized enterprises
MINNEAPOLIS, April 3, 2002--Digital River, Inc. (NASDAQ: DRIV), a leading global e-commerce outsource provider, today announced that it has acquired certain assets and related liabilities of CCNow.com from a wholly owned subsidiary of Innuity, Inc., a privately-held, single source provider of e-commerce services to small businesses and channel partners. Digital River expects the acquisition to be neutral to the company`s earnings in the first quarter of 2002 and accretive to earnings commencing in the second quarter of 2002. The acquisition further expands the company`s e-commerce presence in the small to mid-sized enterprise (SME) market.
"This acquisition is a continuation of our strategy to build critical mass in the SME market, adding thousands of clients to Digital River`s e-commerce platform," said Joel Ronning, Digital River`s CEO. "As we execute against our acquisition strategy, we`ve demonstrated that we know how to drive revenues and volume through our e-commerce system while maximizing efficiencies and resources both for Digital River and our clients. This is a business model that works because it`s built to scale and it`s based on an outsourcing proposition that makes strong financial sense."
Including its acquisition of the CCNow.com assets, Digital River has completed eleven acquisitions in the last three years. Digital River acquired substantially all of the assets and assumed certain liabilities of CCNow.com in exchange for a cash payment. The agreement also provides CCNow.com the opportunity for an additional earn-out based on achieving certain revenue metrics over the course of the twelve months following the closing. As a result of this acquisition, Digital River is adding over 11,000 SME sites to the more than 21,000 sites Digital River currently services.
"When you create expanded market and sales opportunities through thousands of new relationships and maintain your infrastructure and overhead, you have the ingredients for a profitable business combination," said Ronning. "Our e-commerce platform allows us to respond quickly to these acquisition opportunities, providing a distinct competitive advantage that we plan to leverage into the future."
About Digital River
Founded in 1994, Digital River is a leading global e-commerce outsource provider, offering more than 32,000 companies complete e-commerce systems and services. The company`s world-class infrastructure and professional services are proven to grow businesses quickly and profitably while reducing risk. Digital River`s commerce services include e-commerce strategy, site development and hosting, order and transaction management, system integration, product fulfillment and returns, e-marketing and customer service. Digital River`s clients include Symantec, Motorola, Fujitsu, 3M, Siemens, Polaris, Major League Baseball, Novell, Autodesk, SONICblue, Adaptec and Staples.com. For more details about Digital River, visit the corporate Web site at www.digitalriver.com or call 952-253-1234.
Except for the historical information contained herein, this press release contains forward-looking statements, including statements as to the effects of the acquisition on the company and its earnings, and the company`s ability to expand its e-commerce presence in the SME market, and statements containing the words, "believes," "anticipates," "expects," and similar words . Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: the Company`s limited operating history and variability of operating results; competition in the electronic commerce market; and other risk factors referenced in the Company`s public filings with the Securities and Exchange Commission.
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