Internet Capital Group Accelerates Global Transformation of Business.
LAGUNA NIGUEL, Calif.--(BUSINESS WIRE)--July 17, 2000
Leveraging first mover advantage, B2B leader announces European
CEO, expanded Asian management team and new offices to capitalize
on worldwide opportunity
At the Internet Summit today in Laguna Niguel, Internet Capital Group (NASDAQ: ICGE), a leading business-to-business e-commerce company, will roll out its global expansion strategy that will capitalize on the dramatic worldwide growth of B2B e-commerce.
Internet Capital Group (ICG) announced the appointment of Doug Alexander, one of the first members of the ICG US management team and as a result, one of the most experienced executives in B2B e-commerce, as the new CEO of ICG Europe, reinforcing the importance of that operation. In Europe, ICG has provided operational and capital support of more than US$160 million to 11 European B2B e-commerce companies since starting operations in the region in December 1999, and has provided strategic support to nine other US-based partner companies that have established operations in Europe. To take advantage of the rapidly growing European opportunity, ICG is expanding its European footprint with the announcement of new operations in Munich, Germany and Paris, France. In addition, the company announced an expanded Asian management team that will work to bring in and build new business opportunities there
These announcements underscore the company's commitment to, and focus on, the global B2B markets, which industry analysts predict will hit US$7 trillion by 2004. ICG is quickly leveraging its first mover advantage by deploying significant capital and human resources globally, with an initial focus on Europe and Asia.
"The Internet's benefits of efficiency, productivity and speed will touch all businesses in all industries throughout the world," said Walter Buckley, CEO and president of ICG. "ICG fundamentally believes that the B2B winners will be global in scope. We plan to leverage our experience base to quickly and effectively build the worlds leading e-commerce companies. No one has been focused exclusively on B2B e-commerce longer and no one has more cumulative experience across marketplaces, infrastructure providers, and horizontal B2B services than ICG. Our US-based businesses are exhibiting extraordinary traction and now is the right time to emphasize ICG's global expansion."
The company will build its global position and companies through the following.
Management - In addition to the appointment of Doug Alexander, ICG has deployed several other senior executives to build the global business. Alexander will lead a team of more than 20 professionals, and will be joined by John Nickolas, current managing director of finance in the US, who will become CFO for ICG Europe. To support the rapid growth of ICG AsiaWorks (SEHK:715), ICG announced the appointment of eight core management members led by recently named CEO, Victor Hwang. The ICG AsiaWorks pan-Asian team has been assembled to serve as ICG's platform to build Asian-based infrastructure and market maker companies.
Geographic Expansion-In addition to providing operational expertise to its European and Asian partner companies, ICG is building the infrastructure to support the global expansion of its existing US partner companies, including VerticalNet, ICG Commerce, Breakaway and Onvia.com. To provide more on-the-ground support, ICG has established offices in Munich, Germany and Paris, France in addition to its Hong Kong and London operations. Further expansion to capitalize on B2B opportunities throughout these markets is anticipated.
Network Growth - In the past eight months, ICG has deployed more than US$160 million in operational and capital support to 11 European B2B companies, including eu-Supply, EMETRA and GoIndustry. It has also provided strategic support to nine other US-based partner companies that have established operations in Europe. Companies like Bidcom, PaperExchange, ICG Commerce, Onvia.com and VerticalNet Europe have all leveraged ICG's resources to facilitate their international growth and leverage a first-mover advantage in their respective global markets.
Strategic Partnerships - ICG's strategy of integrating its operational expertise with local expertise through strategic partnerships has been exported from the US, where partnerships include ATT, Ford, and IBM. In Asia ICG has teamed with Hutchison Whampoa Ltd and in Europe, the company has agreed to partner with leading Italian-based utility, Enel and through VerticalNet Europe, with British Telecom. These alliances reinforce the strength of ICG's assets through association with established global leaders
"Demand is growing quickly for B2B technologies and marketplaces in Europe and Asia," said Doug Alexander, CEO of ICG Europe. "These markets watch the US closely and are adopting best practices rapidly. ICG's culture, methodology, business process and organizational knowledge add the right framework to help these markets succeed and grow at an even faster rate than we saw in the US."
Aggressive Growth in Europe
Industry analysts, including Gartner Group, have noted that the strongest regional growth in the B2B market can be found in Europe. B2B revenue in Europe in 1999 totaled $31.8 billion. In 2004, the European B2B market is expected be more than $2.34 trillion.
As CEO for ICG Europe, Doug Alexander brings invaluable leadership and industry expertise to strengthen the European partner companies, and add significant value to the established management team. As a former entrepreneur, early ICG executive and chairman of VerticalNet, Alexander is uniquely suited to build ICG Europe's network of partner companies, provide strategic guidance to the management teams at these companies, manage the growth of and attract investors for ICG operations. He was instrumental in the European expansion of US-based VerticalNet and LinkShare, and will continue to counsel these and other partner companies in the ICG network. As CFO for ICG Europe, Nickolas will lead a group of financial professionals to provide value-added, high-level financial consultancy to ICG's partner companies in Europe, and oversee financial operations for ICG.
"Doug is one of the most seasoned executives in the interactive business, with a flair for creativity and business savvy that all who have worked with him have come to appreciate," said Mark Walsh, CEO at VerticalNet. "He has been a key member of the support team, both at a board level and down in the trenches. We can hardly wait to work with him in Europe."
ICG AsiaWorks Announces Management Team
Estimated at more than US$400 billion, the Asia B2B market provides great opportunity for ICG and its partner companies. ICG AsiaWorks, ICG's partnership with Hutchison Whampoa Ltd, has formed a top-level management team to support CEO Victor Hwang in Hong Kong, to assist ICG's partner companies with their expansion into Asia. The team will identify, acquire interests in, and actively assist Asian B2B companies, build and incubate Asian B2B companies, and expand the ICG presence in multiple countries across the Asian continent.
Tuan Lam and Paul Yang, managing directors of acquisitions, have joined from Goldman Sachs in Hong Kong, and will be responsible for the identification and acquisition of partner companies in Asia. Tiak Koon Loh, former CEO of Cap Gemini Group's Asia Pacific operation, joins as managing director of operations to assist newly acquired partners in Asia and support current partners in the ICG network as they bring their businesses to the Asian market. Additional management strength is being provided by Mike Goldstone, managing director of executive search, who joins the senior management team to identify and recruit world-class executives for ICG AsiaWorks and its partner companies.
About Internet Capital Group
Internet Capital Group (www.internetcapital.com) is an Internet company actively engaged in business-to-business e-commerce through a network of partner companies. It provides operational assistance, capital support, industry expertise and a strategic network of partnerships intended to maximize the long-term market potential of more than 70 business-to-business e-commerce partner companies. Headquartered in Wayne, PA, Internet Capital Group has offices in San Francisco, Boston, Seattle, London, Munich, Paris and Hong Kong.
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 17, 2000|
|Previous Article:||Motorola Expands CreataLink Line With a Small, Low-cost Flex Protocol Receiver -- a Building Block for Wireless Messaging.|
|Next Article:||Neurotrash Pacts With Bonrop Productions.|