Financial services giant Citigroup
and e-commerce heavyweight Commerce
One agreed to a launch a business-to-business portal providing
e-commerce services to Citigroup’s corporate customers.
Financial terms were not disclosed.
Citigroup’s e-Citi unit, which provides financial services
and e-commerce, will employ the Commerce One (CMRC)
MarketSite portal solution to create a virtual marketplace linking corporate
buyers and suppliers to the new Citibank Procurement Connection portal. The
new destination will process transactions and host vendor catalogs as well
as market specific applications addressing the needs of particular
industries.
In return, Citigroup will become the primary financial service provider on
the Commerce One MarketSite Global Trading Portal, which will enable all
buying organizations trading on MarketSite to take use of Citibank’s
financial services. These services will also be made available through the
Commerce One Global Trading Web.
e-Citi will launch its global trading portal in early 2000 to provide hosted
procurement applications to businesses and governments. In addition to
linking buyers and sellers, the portal will benefit participating
enterprises through distinctive financial service features, such as
immediate online executable currency exchange rates, financing, procurement
card capabilities and digital certificates, the companies said.
Ed Horowitz, senior corporate officer of Citigroup, described the venture as
“a powerful combination of cutting-edge technology, Citigroup’s global
corporate franchise and our borderless financial services.”
The deal is an important score for Commerce One, who is jockeying for
position in the B2B e-commerce sector with the powerful Ariba Inc. (ARBA)
to sell their software platforms to major players in the industry. Commerce
One and Ariba have also been dipping into other markets including auto
manufacturing, chemical
manufacturing and pharmaceuticals.