AppNet Acquires i33 Communications

Bethesda, MD-based AppNet, a provider of Internet business
solutions, is acquiring i33 communications in New York City.

AppNet is seeking to become a fully integrated, end-to-end e-commerce
solutions provider and said that with this acquisition, it is adding i33’s
ROI-based marketing and online design and development capabilities. Financial
terms were not disclosed.

i33 created AdMaximize, a closed-loop ROI-tracking service, which provides
easy-to-use, customized reports on impressions, click-throughs, leads and
sales. i33 also provides ROI-based media planning and buying, Web site and
banner advertising design, information architecture and online brand

“i33 provides AppNet with superior Internet design and ROI accountability
moving AppNet closer to our goal of becoming the first world-class e-commerce
solutions company,” said Ken Bajaj, founder and CEO of AppNet.

“Every Internet company, including those so-called agency ‘roll-ups,’ claims
to offer e-commerce services, but AppNet is the only company that delivers a
full range of e-commerce systems integration, development and outsourcing,”
said Drew Rayman, president of i33. “Frankly, AppNet gets it–they’re
assembling the right mix of cutting-edge, new breed e-commerce solution
providers. AppNet already builds perfect e-commerce ‘machines’; i33 adds
unparalleled ability to drive qualified consumers through that machine.”

In less than one year, AppNet has acquired eight companies with diverse
backgrounds: i33 communications; Arbor Intelligent Systems of Ann Arbor, MI, a
provider of object-oriented application development; the Kodiak Group,
specialists in EDI outsourcing and services; LOGEX International of Falls
Church, VA, providers of e-commerce solutions for the retail industry;
Software Services Corp. of Ann Arbor, MI, a provider of Web-based application
development for manufacturers; NMP Inc. of Falls Church, VA, a Web brand
identity development company; Century Computing Inc. of Laurel, MD, an
information technology solutions and e-government solutions provider; and
Research & Planning Inc. of Cambridge, MA, a provider of Web-enabled ERP
integration and data warehouse solutions.

Last July, AppNet received $100 million in a private equity placement from
Chicago-based GTCR Golder Rauner.

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