EPValue provides indirect procurement, supply management, procurement operations, and business information services. The agreement will incorporate key operating and investment commitments by Andersen Consulting, Sun Microsystems, a strategic partner in and an equity owner of ePValue, and ICG Commerce. The merged company will operate under the ICG Commerce name, IGC said.

As part of the deal, AC Ventures, the venture capital unit of Andersen Consulting, and Sun Microsystems will gain equity positions in the expanded ICG Commerce, the firm said. The combined entity's first new customer, Sara Lee Europe, will also take an equity stake in ICG.

The deal, which is expected to close in about 45 days, will combine ePValue's operations in North America and Europe and its $20 million in annual revenue with ICG Commerce's existing operations. The merged entity will have over $10 billion in actual purchase transactions under the leadership of ICG Commerce's president and chief executive officer, Rick Berry, ICG said.

The agreement adds a total category management outsourcing capability to ICG Commerce's existing exchange-based offering that requires no up front capital investment in software. In addition, the merged customer base will nearly double the purchasing power of ICG Commerce and increases its procurement specialists by more than 250 to 550, the firm said.

As part of the deal, ICG Commerce will serve as Andersen Consulting's preferred, cross-industry, turnkey e-procurement solution and will be offered to its worldwide client base for indirect categories. Eventually, ICG will manage AC's global indirect spend totaling in excess of $1.2 billion. Andersen Consulting's 50 procurement professionals will be offered opportunities to join ICG. In addition, Sun Microsystems will continue as a preferred hardware platform for both ePValue and IGC. A Sun-Netscape Alliance, iPlanet E-Commerce Solutions, will be offered as a preferred solution for customers secured through the Andersen Consulting channel, ICG said.

"The B2B e-procurement services marketplace is experiencing rapid consolidation as companies join forces to create greater levels of value that customers expect and deserve," said Bill Copacino, global managing partner of AC's Supply Chain service line. "Our merger agreement with ICG Commerce is a huge step toward establishing a global leadership position in indirect e-procurement through the synergistic combination of our experiences, client relationships and operations."

In January, Andersen Consulting will change its name to Accenture as part of the arbitration agreement that split the firm from Arthur Andersen in August.

-- SmartPros News Staff

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