Apr, 2002 : Digital River Acquires Certain Assets of CCNow.com
📅 - Digital River Inc. (digitalriver.com), a leading e-commerce outsource provider, announced on Wednesday that it has acquired certain assets and related liabilities of CCNow.com, a provider of online checkout services, from a subsidiary of Innuity Inc., a privately-held e-commerce service provider.
Including the acquisitions of CCNow.com, and of Beyond.com earlier in the week, says Digital River, the company has completed 11 acquisitions in the past three years. The company says it expects the acquisition will be neutral to its earnings in the first quarter of 2002, and build on its earnings with the start of the second quarter of 2002.
Digital River says it acquired substantially all of the assets, and assumed certain liabilities, of CCNow.com in exchange for payment in cash. The acquisition also provides CCNow.com with the opportunity for an additional earn-out based on achieving certain revenue metrics over the course of the twelve months following the closing.
?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,'' says 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.''
As a result of the acquisition, says Digital River, the company is adding over 11,000 SME sites to the more than 21,000 sites that currently use Digital River's 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,'' says 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.''
Including the acquisitions of CCNow.com, and of Beyond.com earlier in the week, says Digital River, the company has completed 11 acquisitions in the past three years. The company says it expects the acquisition will be neutral to its earnings in the first quarter of 2002, and build on its earnings with the start of the second quarter of 2002.
Digital River says it acquired substantially all of the assets, and assumed certain liabilities, of CCNow.com in exchange for payment in cash. The acquisition also provides CCNow.com with the opportunity for an additional earn-out based on achieving certain revenue metrics over the course of the twelve months following the closing.
?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,'' says 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.''
As a result of the acquisition, says Digital River, the company is adding over 11,000 SME sites to the more than 21,000 sites that currently use Digital River's 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,'' says 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.''
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