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.
Through B2Bgalaxy.com’s suite of PowerProducts, including PowerPurchasing and
PowerVendor, veterinarians will be able to purchase supplies for their
practices online from multiple distributors through a virtual private
exchange.
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.
