Onvia.com Acquires DemandStar.Com
- By Patience Wait
- Mar 07, 2001
Onvia.com Inc. of Seattle has completed its acquisition of DemandStar.com, a provider of business-to-government electronic commerce solutions.
As a result of the merger, Onvia and DemandStar will have a stronger presence in a wider range of regional markets throughout the United States.
Onvia is acquiring DemandStar for 6 million shares of Onvia stock, a total value of just over $4 million based on the share's March 6 closing price of $0.68.
"Onvia has completed a number of important acquisitions over the past nine months and the transaction with DemandStar is the most significant," said Glenn Ballman, chairman and chief executive officer. "It provides an expanded presence in the B2G market, especially at the state and local level, and establishes Onvia as a leader in this space."
Onvia provides financial and marketing resources, access to small businesses in its exchange, government experience, technology expertise and a national network of small business associations.
DemandStar offers an established business-to-government platform, a rapidly growing group of more than 270 government agencies, nearly 17,000 subscribing suppliers and a national sales force serving the U.S. market from locations in more than 22 states.
Onvia has substantially completed merger integration planning with implementation now under way, according to Michael Pickett, president and chief operating officer. He said the company's business model is to sign government agency suppliers to subscriptions, enabling them to receive government bids from the Onvia exchange.