Online auctioneer QXL.com Thursday
took a 50 per cent equity stake in
ibidlive of the Netherlands.
QXL.com (QXLC) will invest £5.9 million ($9.44 million) in ibidlive, which
specialises
in developing software and systems for use in live auctions conducted on the
Internet, TV or telephone.
“This investment will significantly expand our technology base and enable
QXL.com
to deliver Internet auctions via a new medium, namely television,” said
Jim Rose, CEO of QXL.com.
“With the convergence of technology, we are now well positioned to deliver
auctions via the Internet, telephone and television. It also provides an
excellent platform to continue our strategy of rapid expansion of our
business and development of our brand across Europe.”
In 1998, ibidlive had sales of nearly
half a million pounds ($800,000), pre tax profits of £24,000 ($38,400)
and net
assets of £314,000 ($502,000).
“Online auctions continue to grow in popularity and increasingly as an
entertainment medium,” said Peter Farid Faisal, CEO of ibidlive.
“Since September 1998 over 20 auctions have been held using ibidlive
technology.
QXL’s strong European presence and ibidlive technology is a winning
combination.”
The investment is expected to give QXL.com additional branding and
distribution
opportunities in Europe. Already a pan-European online auction community,
QXL.com
operates sites in Germany, France, Italy, Holland, and Norway, as well as in
the UK.
QXL bought leading Norwegian auction site DinSide Auksjon from online publisher DinSide AS for #13.2 million ($21.4
million) in an all-stock deal. The site will be added to a new QXL.com version for Scandinavia.
