Office Depot Inc. entered into a
strategic e-business relationship with PurchasePro.com and said it made an
equity investment in the company.
Under terms of the agreement, PurchasePro.com will be the recommended Web
based business-to-business e-commerce solution to be mass marketed to Office
Depot customers and clients.
Office Depot will be featured as the exclusive preferred provider in the
PurchasePro.com B2B e-marketplace. The two companies will jointly create the
largest e-marketplace targeting small and medium-sized businesses.
Office Depot and PurchasePro.com will share in the multiple revenue opportunities
including transaction fees, subscriptions, and advertising. Details of the
investment were not disclosed.
The PurchasePro.com business-to-business e-commerce solution will be marketed
in more than 800 Office Depot superstores and offered by the sales force of
Office Depot’s Business Service Division, which services corporate customers.
PurchasePro.com will be advertised prominently on Office Depot’s U.S. public
Web site as well as in catalogs, direct mail pieces, and other advertising
material. The two companies also agreed to conduct national e-commerce
seminars aimed at small and medium sized businesses.
Office Depot currently owns 500,000 shares of PurchasePro.com’s stock,
including 400,000 shares purchased in the company’s initial public offering
in September 1999.
Office Depot holds warrants and other rights to acquire up
to an additional 600,000 shares.
PurchasePro.com’s e-commerce solution is comprised of public and private
“e-marketplaces” where businesses can buy and sell a range of products and
services.
