From: Adam Rifkin (Adam@KnowNow.Com)
Date: Thu Sep 28 2000 - 22:21:52 PDT
Ok, this news is two weeks old and Lane had to point it out to me, I just
want it here for the scrapbook. ICQ and Hotmail sold for $400 million
apiece several years ago to AOL and Microsoft; eGroups went to Yahoo in
June for $430 million. Also, Nullsoft went for $100 million last year to
AOL, and MongoMusic went to Microsoft last month for $65 million. So in
one sense, SpyOnIt sold early, instead of waiting for AOL, Microsoft, or
Yahoo to notice them in a market that has been less-than-kind since March
2000. On the other hand, $55 million -- including $2 million in cash -- is
amazing for a company that has maybe 20 people and has only been around for
a year. (Do they even have revenues?) "Internet time" can be fast when it
wants to be...
724 Solutions Acquires Spyonit.com
Integration of alerts technology answers the growing need from customers to
have personalized information anytime, anywhere, on any device
Toronto, ON (September 13, 2000) -- Leading Internet infrastructure
software developer, 724 Solutions Inc. (NASDAQ: SVNX; TSE: SVN), today
announces it has acquired Chicago-based Spyonit.com, Inc., a leading
developer of Web-based monitoring and notification technology.
Spyonit.com's alert software adds to 724 Solutions' vision of offering a
comprehensive, customized end-user experience for financial institutions'
724 Solutions will acquire all of the outstanding shares of Spyonit.com in
exchange for U.S. $2 million cash and 1,041,616 of its common shares. Based
on the closing price on the Nasdaq National Market on September 12, 2000,
and including contingent costs associated with key employee retention, the
transaction will have a value of approximately U.S. $53.4 million.
Spyonit.com was founded in October 1999 to make it easy for users to stay
on top of the things they care about - even while they're away from their
computer. The company's infrastructure software monitors the Internet and
other content sources for items of interest such as stock prices, product
sales, or auction bids. When appropriate content is detected, the
Spyonit.com system delivers smart notifications to the user through a
variety of Internet-accessing devices, such as cell phones and personal
"Spyonit.com allows us to broaden the range of alert services our Financial
Services Platform supports, complements our LiveClips aggregation solution,
and adds a compelling standalone offering to our product portfolio," said
Greg Wolfond, chief executive officer, 724 Solutions.
"Financial institutions see this technology as critical as it provides an
excellent entry point for mobile transactions as well being a 'sticky'
service that keeps customers coming back again and again."
Spyonit.com's alert technology and management team will provide the
platform and expertise for what will become 724 Solutions' "Tell Me When"
offering - presenting consumers with personalized alerts on informational
events when they occur, and eventually enabling them to complete
transactions based on that information. Spyonit.com's technology will
enable 724 Solutions' Financial Services Platform (FSP) to support
e-commerce alerts from merchant Web sites and account alerts from financial
In addition, the Spyonit.com business unit will independently target other
market segments including media/news and entertainment, healthcare,
portals, search engines and other enterprise categories.
Dick Costolo, chief executive officer and president of Spyonit.com said,
"724 Solutions offers us outstanding technology, talent, culture, and
strategic vision that will enable us to accelerate our market penetration."
According to Costolo, the proliferation of connected Internet devices is
changing the way people receive and interact with information. Spyonit.com
is poised to lead in the development of alerts infrastructure software and
tools, changing the very nature of information exchange. In a recent survey
of the U.S. market Forrester Research reported that over 60 percent of
people who use Internet-enabled devices want notifications on discounts and
promotions. Additionally, International Data Corporation reports that there
are almost 70 million U.S. Internet-enabled devices capable of receiving
Currently, Spyonit.com (www.Spyonit.com) is working with Morningstar and
other news and financial content providers to deliver personalized
notifications to Internet devices. Spyonit.com was recognized in the "10
Internet Essentials" category under the "50 Most Incredibly Useful Sites"
list in the July 2000 issue of Yahoo! Internet Life Magazine.
About 724 Solutions Inc.
724 Solutions provides an Internet infrastructure solution to financial
institutions that enables them to offer personalized and secure mobile
banking, investment, and e-commerce services across a wide range of
Internet-enabled wireless and consumer electronic devices. The company
provides end-to-end customer support through its global application hosting
and contact center services. 724 Solutions' customers comprise world-class
financial institutions whose combined customer bases total 165 million. 724
Solutions' common shares are listed on the NASDAQ National Market (SVNX)
and the Toronto Stock Exchange (SVN). Headquartered in Toronto, Canada, the
company has offices in London, Paris, San Francisco, Santa Clara, Sydney,
and Tokyo. For additional information visit www.724.com.
Eminem: I am whatever you say I am. If I wasn't, then why would I say I am? Kragen: You can't really argue with that logic, can you?
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