RealTime IT News

CitX Opts Out of CBQ Merger

E-commerce company CitX Corp. canceled a planned merger with CBQ Inc., saying that due diligence studies indicated the merger would not fully promote the business strategies and objectives of CitX.

Instead, with the help of Capital House in Washington, DC, CitX said it will focus on securing capitalization through private placements, and advancing the potential IPO of its recently formed subsidiary, IntraMedX Corp. CBQ operates bid4it, an auction site, and has other e-commerce ventures.

Capital House agreed to provide an initial equity investment of up to $2.2 million to help capitalize the deployment and expansion of CitX's core e-business and e-commerce technology into other vertical markets. Capital House said it would also help formulate an additional private placement, as well as strategic partnerships for CitX and its subsidiaries.

"After careful review of the CBQ deal by our board of directors, it was determined that a merger would consume CitX resources and divert the CitX management from its core focus of building a world-class B-to-B e-commerce company," said Bernie Roemmele, CEO of CitX. "In addition, CitX's new subsidiary, IntraMedX, is now ready to make a major entry into the healthcare market and needs the full attention of its founders.

IntraMedX is a subsidiary of CitX that provides subscription-based integrated Web-hosted e-business solutions including practice/patient management, automated insurance eligibility/claims processing, EMR, and other e-commerce services delivered via the Internet to physicians, hospitals, insurance companies, and others in the healthcare sector.

IntraMedX also operates HCSIN, an Internet-based healthcare network that connects physicians, healthcare professionals, hospitals, payors, and other healthcare entities to a virtual world of healthcare, fitness, and medical information, services and tools.

CitX has developed a Web-enabled integrated B-to-B e-commerce platform called Intrapay, to collect and disburse payments via the Internet. The Intrapay platform is comprised of various service modules, which clients may subscribe to, enabling cost-effective, enterprise-wide, EDI and Y2K compliant e-commerce functionality, and direct interface between a client's current legacy system and the Priority One Bill Collect service.