VerticalNet
Verticalnet Inc. (Nasdaq:VERT) was a "provider of On-Demand Supply Management solutions to companies ranging in size from mid-market to the Global 2000" and host of business-to-business (B2B) procurement portals ("B2B hubs"). Founded in 1995 and originally headquartered in Malvern, PA, Verticalnet became famous during the Dotcom bubble for its US$12 Billion valuation in early 2000,[1] at a time when the company had few tangible assets and a revenue stream of only US$112.5 million. At the peak of its valuation, VerticalNet operated a few B2B portals, plus more than 50 Internet business-to-business trading communities as well as professional communities.
In 1999, the company lost US$53.5 million on revenues of 18.4 million. In 2000, revenues increased to sixfold to $112.5 million, but losses multiplied equally, resulting in $311.3 million negative net income that year. Despite claims by Verticalnet CEO Mark Walsh that the company would become profitable by Q2 2001,[2] profitability was never achieved.[3]
VerticalNet (NASDAQ: VERT) sold its Small and Medium Business Group to Corry Publishing, now Jameson Publishing,[4] for a cash up-front payment of $2.35 million and a four-year performance-based earn-out of $6.5 million, as well as the assumption of certain liabilities. Jameson Publishing is a business media company that publishes magazines, email newsletters and buyers guides for Enterprise IT professionals.[5] The Jordan, Edmiston Group represented VerticalNet in this transaction. At the same time VerticalNet sold their Small and Medium Business Group, they acquired a Malvern-based application software company called Atlas Commerce. After acquiring Atlas, Verticalnet relocated to Malvern, where Atlas was based. Verticalnet rebuilt their business as a provider of strategic sourcing / supply management software, acquiring several other companies over the next several years, until the company was sold to Bravo Solutions in 2008.[6]