CBQ and CitX Sign Merger Pact
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The merger will add management, technical, and marketing talent to help develop and deploy integrated business-to-business e-commerce solutions and to move the CBQ bid4it b-to-b system into several vertical markets.
CBQ's wholly owned subsidiary, CyberQuest Inc., is the developer of www.bid4it.com, a virtual, Internet-based marketplace, based on the principles of securities trading. bid4it is an electronic marketplace that prices products based on the open market interaction between bidders and sellers.
The primary terms of the transaction include the integration of CitX key management people and technical staff, acquisition of CitX assets, technology licenses and 90 percent of CitX stock, in exchange for a 66 percent equity stake in CBQ by current CitX shareholders. Once the transaction has been approved by the boards of both companies, the directors will move to change the public trading name to CitX.
CitX is a privately-held company that primarily develops and markets business-to-business e-commerce solutions, community-centric portals, and network-centric (Web-hosted) software applications.
CitX's founders recently formed two new companies: First Portals Corp., to focus on developing and marketing vertical b-to-b portals; and IntraMedX Corp., to focus on developing and marketing Internet-based solutions for the healthcare sector. CitX has issued exclusive licenses to its e-commerce technology to each of these new companies and has secured a 10 percent equity position in each.
Revenue resulting from the combined active customer base of CitX and CBQ, including new sales opportunities stemming from strategic partnerships, is projected to exceed $60 million over the next 6 to 12 months, the company said.
Last week, CBQ purchased Priority One, a sister company of CitX. Priority One is a provider of Internet electronic payment processing applications and markets the proprietary Bill Collect system.
CitX's principal product is 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 to which clients may subscribe.