NetZero Inc. will dole out a load of cash to
put e-commerce firm RocketCash Corp. in
its pocket.
The nation’s leading free Internet service provider Thursday signed an
agreement to acquire the privately-held transaction-facilitating firm.
In order to seal the deal, NetZero intends to issue
approximately 5.6 million shares of its common stock.
Based on Wednesday’s close, the transaction is valued at more than $36
million. Subject to various closing conditions, the transaction should be
completed during the third quarter of this year.
RocketCash provides an online gateway to the Net that enables consumers,
particularly the teen market, to buy on the Internet without a credit card.
The deal marks NetZero’s goal to expand its e-commerce services and enhance
its revenue streams.
Mark Goldston, NetZero chairman and chief executive officer, said
RocketCash would appeal to all of its users, in particular, the booming
e-commerce potential of the teen marketplace.
“The teen market is an important segment for e-commerce, and to date there
have been limited means of enabling teens to purchase online without a
credit card,” Goldston said. “Retailers the world over recognize the huge
potential for e-commerce, which up to this point has been limited by the
trepidation of consumers to provide credit card information online.
RocketCash solves that problem.”
NetZero intends to utilize RocketCash’s proprietary currency exchange and
payment processing technology to create a robust merchant network for
NetZero’s more than 4 million registered users.
Goldston said the deal would greatly enhance its e-commerce strategy and
provide users with another free service of exceptional value.
“Making the shopping experience quick and easy, RocketCash enables members
to purchase items and services online securely without a credit card,”
Goldston said. “RocketCash users can easily fund an account with a check,
money order, gift certificate or credit card, it can meld any kind of
online and offline currencies into one place.”
RocketCash technology enables consumers to aggregate various forms of
currencies, including online incentive dollars, offline promotional points,
gift certificates, money orders, personal checks and U.S. dollars into one
account. The gateway acts as an intermediary between online shoppers and
merchants.
RocketCash’s data capabilities combined with NetZero’s proprietary zCast
technology enable the nation’s leading free ISP to provide its users with
targeted online redemption coupons and advertisements. RocketCash has
agreements with over 110 top-tier e-tailers that are part of the its
merchant network.
Jeffrey A. Mason, RocketCash chief executive officer, said the firm would
be able to broadly expand its services through NetZero.
“By serving as the engine for NetZero’s merchant network and gaining access
to its registered users, RocketCash will continue to be a leader in
providing shopping and currency exchange on the Internet without the need
for a credit card,” Mason said.
“We look forward to bringing our e-commerce and payment processing
expertise to NetZero as we continue to develop the RocketCash brand and
services,” Mason added.
