Quakertown, PA-based e-commerce app provider CitX Corp. and CBQ Inc. said they are expect to finalize a
merger agreement within days.
The merger will add management, technical, and marketing talent to help
develop and deploy integrated business-to-business e-commerce solutions and
to move the CBQ bid4it b-to-b system into several vertical markets.
CBQ’s wholly owned subsidiary, CyberQuest Inc., is the developer of www.bid4it.com, a virtual, Internet-based
marketplace, based on the principles of securities trading. bid4it is an
electronic marketplace that prices products based on the open market
interaction between bidders and sellers.
The primary terms of the transaction include the integration of CitX key
management people and technical staff, acquisition of CitX assets, technology
licenses and 90 percent of CitX stock, in exchange for a 66 percent equity stake in CBQ by
current CitX shareholders. Once the transaction has been approved by the
boards of both companies, the directors will move to change the public
trading name to CitX.
CitX said it plans to grow its staff to about 250 people over the next 12
months and will continue to maintain its primary corporate offices in
Quakertown, with three network operations centers/sales offices in
California, Florida, and Texas.
CitX is a privately-held company that primarily develops and markets
business-to-business e-commerce solutions, community-centric portals, and
network-centric (Web-hosted) software applications.
CitX’s founders recently formed two new companies: First Portals Corp., to
focus on developing and marketing vertical b-to-b portals; and IntraMedX
Corp., to focus on developing and marketing Internet-based solutions for the
healthcare sector. CitX has issued exclusive licenses to its e-commerce
technology to each of these new companies and has secured a 10 percent equity
position in each.
Revenue resulting from the combined active customer base of CitX and CBQ,
including new sales opportunities stemming from strategic partnerships, is
projected to exceed $60 million over the next 6 to 12 months, the company
said.
Last week, CBQ purchased Priority One, a sister company of CitX. Priority One
is a provider of Internet electronic payment processing applications and
markets the proprietary Bill Collect system.
CitX’s principal product is a Web-enabled integrated b-to-b e-commerce
platform called Intrapay, to collect and disburse payments via the Internet.
The Intrapay platform is comprised of various service modules to which
clients may subscribe.
