B2B Marketplace for Veterinary Industry Planned
Page 1 of 1
Cornerstone Internet Solutions, a B2B services provider, said that its B2Bgalaxy.com subsidiary agreed to license its packaged e-commerce solution to Pet Assure Inc. and create VETgalaxy.com, an online marketplace for the veterinary industry.
B2Bgalaxy.com will function as an operational and support partner for the new company by managing and hosting the VETgalaxy.com Web site, providing customer support and a suite of its PowerProducts, including PowerPurchasing, to address e-procurement requirements.
B2Bgalaxy.com will receive a one-time licensing fee of $1 million and ongoing fees generated from Web site management and maintenance, customer and technical support services.
As partial payment of these fees, B2Bgalaxy.com will receive a minority equity interest in VETgalaxy.com, which will be operated as a stand-alone company, although Pet Assure will own a majority. Cornerstone's USWeb/CKS Cornerstone subsidiary will also provide Internet consulting and development services and a portion of these services will also be paid for in equity.
VETgalaxy.com's Web site is to be launched in mid-April on a pilot basis. The site will be fully functional at that time, but confined to 30 pilot veterinary practices until the national roll-out this summer.
Pet Assure, is a pet health care membership organization with more than 2,000 participating veterinarians in 44 states. Founded in 1996 by Jay Bloom and Carolyn Farkas, the company connects consumers with independent veterinarians to increase access to quality pet care at reduced costs.
"This is only the second in what we believe will be a number of specific industry portals that we intend to create through our packaged solution," said Ed Schroeder, president and chief executive officer of Cornerstone and B2Bgalaxy.com.
B2Bgalaxy.com also operates FOODgalaxy.com, a marketplace that enables restaurants and other food service establishments to post a customized inventory list online and requires suppliers to continually submit their latest product bids.