RealTime IT News

NetSales Secures Capital

Outsourced e-business solution provider NetSales Inc. secured $31.75 million from a group that includes Norwest Equity Partners, Time Warner, The Chase Manhattan Corporation, Wells Fargo & Co. and Advanta Partners.

The investment "further validates our approach and the need in the middle market that we're targeting," said Robert Fraser, NetSales founder and chief executive officer.

Fraser said a portion of the funds will be used to double the company's employee base to 300 this year and to expand NetSales' range of service offerings. Fraser said NetSales also will gain from strategic arrangements that will make the company's e-commerce solutions available to business customers and affiliates of several of the investing firms.

NetSales said it currently conducts full-service e-commerce for more than 2,000 companies, up from 500 at year-end 1998.

"We believe NetSales provides tremendous value in enabling e-commerce in a business-to-business environment, and are very excited to be backing this first-class management team," said Art Monaghan, a principal at Norwest Equity Partners.

NetSales provides the services, processes and technological infrastructure that allow small- to medium-sized businesses to conduct both business-to-consumer and/or business-to-business e-commerce initiatives.