PurchasePro, AOL in new deals

Kevin Ferguson

Wednesday, March 28, 2001 | 11:07 a.m.

Investors in PurchasePro seemed indifferent this morning, with PurchasePro shares rising just 3 cents to $7.28, following a company announcement of 10 new strategic partnerships including deals with Hewlett-Packard and Homestore.com.

H-P and Homestore will be connected to an Internet-based marketplace co-developed by PurchasePro and American Online.

The Netscape Netbusiness Marketplace that AOL and PurchasePro are creating, which was announced last year, will be a one-stop global e-commerce network of cyber-communities that allow small, medium and large businesses to buy, sell and interact online.

"The secret sauce for our partnership... is more than just commerce. Combining AOL's community and content with our commerce... we are making a water-cooler gathering place for small businesses," said PurchasePro Senior Vice President of Marketing Chris Benyo, speaking on a conference call this morning to investors and financial analysts.

Companies wanting to use the AOL-PurchasePro marketplace to buy or sell products will pay an annual subscription fee. AOL and PurchasePro also receive a fee for each transaction made on the network.

Revenues generated from the Netscape Netbusiness Marketplace will be split 50-50 between AOL and PurchasePro, said Charles Johnson Jr., PurchasePro's chairman and chief executive.

The initiative builds on PurchasePro's network, which includes 140,000 business subscribers, all of which will be connected to the Netbusiness Marketplace. AOL is the largest Internet service provider with 28 million users.

PurchasePro's share value of $7.28 is up $1.31 since hitting a 52-week low last week following an analyst's report that downgraded the stock. Tim Getz of Prudential Volpe Technology Group said in the report he expected PurchasePro's shares to reach $10 within 12 months -- down from his earlier forecast of $25.

PurhasePro also signed agreements with BroadVision Inc., a supplier of personalized e-business applications; Plant America, a resource for the lawn and landscape industry; eFruit, an electronic marketplace for the agricultural industry; and ProfitScape, a Las Vegas-based provider of automated payment systems.