Research Triangle Park, North Carolina – (The Hosting News) – October 19, 2005 – Software provider for the small-to-medium size business (SMB) marketSmart Online, Inc., and iMart Corporation, a solutions provider of ecommerce systems, have announced that Smart Online has acquired iMart for $3.4 million in cash and 205,767 shares of stock.
Smart Online’s acquisition of iMart is the company’s second acquisition in the fourth quarter of 2005.
During 2006, Smart Online will integrate iMart’s proven eCommerce Storefront application into its OneBiz Conductor platform and make other upgrades to provide a full-featured commerce solution for selling goods over the Internet. Once completed with the integration and other enhancements, the OneBiz Conductor platform will offer the following online applications:
- Customer Relationship Management
- eCommerce Storefront
- Human Resource Management
- Sales Force Automation
According to Michael Nouri, President and CEO, Smart Online Inc., ”Smart Online is becoming a powerhouse in the small business Software-as-Service market, delivering, through our OneBizConductor Platform, a more comprehensive suite of business applications than any other offering in the marketplace today. According to the SBA, there are approximately 22.9 million small businesses in the United States. Our customers and the estimated 4 million visitors to the websites of our private-label partners will have access to iMart’s applications and services that will function seamlessly through our platform. This, along with iMart’s private-labeling strategy to corporations, is in line with our own approach to address this large market.”
Mr. Nouri added, ”Strategically, Smart Online intends to capture a greater share of the dollars spent on IT by the millions of small businesses in this large, underserved market. We plan to start by exploiting cross-selling opportunities, offering our business applications to iMart’s current customer base and their eCommerce application to all of our potential customers.”
Gary Mahieu, President and CEO, iMart Corporation commented, ”Businesses are rapidly beginning to see the value of Internet Applications in their ability to enhance competitive advantage, efficiency and increased profitability. We are focused and positioned to service these customers through our integrated software as service offerings. Both iMart and Smart Online share the vision of serving the SMB market and private labeling our business applications to corporations who enable their small business customers to focus on running their business. We look forward to joining Smart Online to further execute upon its strategy to deliver the most comprehensive application platform to our customers.”
iMart reported net income of approximately $1.4 million on revenues of approximately $3.4 million for the year ended 2004. During the first six months of 2005, iMart reported net income of approximately $714,000 on revenues of $1.7 million. Had the acquisition of iMart occurred on January 1, 2005, revenue for the combined entities for the six months ended June 30, 2005 would have totaled approximately $2.4 million, or 250% higher than Smart Online’s reported revenues of approximately $660,000 for the same period. Smart Online expects to retain iMart employees in Grand Rapids, Michigan and will continue to support iMart’s current subscribers of over 17,000.
Smart Online’s pro forma combined revenues for the first six months of 2005, including both iMart and the recently announced acquisition of Computility, would have totaled approximately $3.4 million, or over 400% higher than Smart Online’s reported revenue of $660,000 for the same period.
For further information, please visit: www.smartonline.com.