Internet Capital Group, a venture-capital holding company that invests in E-commerce sites, said today that it will pay $450 million in a stock swap to acquire a 30% stake in the E-commerce financing site eCredit.com.
Privately held eCredit.com connects businesses to lending institutions through its Global Financing Network to shorten processing time for credit and financing applications.
The arrangement fills a hole in ICG's portfolio, analysts say. "This is a good move for ICG," says Varda Lief, senior analyst Forrester Research Inc. "The future of business-to-business marketplaces is connected to services. The transaction itself will be a commodity, and the way to tie in customers is to have services like financing available."
The deal will benefit eCredit, which has had great success in winning accounts on its own, by allowing it to leverage ICG's relationships with other E-commerce accounts."They have a lot of influence that we can use," says Peter McKay, president of eCredit.com. "Being associated with a leader in the market will certainly benefit us."