Auto Service World
News   April 27, 2001   by Auto Service World

B2B Vertical Markets Inc. invests in NET3F Inc.,

Mediagrif Interactive Technologies Inc. announced today that B2B Vertical Markets Inc., a strategic alliance between Royal Bank of Canada and Mediagrif, is purchasing shares in NET3F Inc., an established company bringing B2B solutions to the automotive industry.
B2B Vertical Markets will invest up to $2 million CDN to acquire a controlling interest in NET3F, a Montreal based B2B marketplace and supplier of management software operating in the automotive industry.
NET3F’s marketplace is a simple and fast solution for purchasers and vendors of automotive parts. It facilitates searching, purchasing and selling automotive parts throughout the supply chain, without changing the existing relationship among the players of the industry. It also offers the convenience of 24-hour accessibility and on-line catalogues for its members. Overall, the marketplace creates value for users by offering time savings and increased revenues by improving efficiencies in the industry’s traditional business processes.
More than 1,100 companies are members of NET3F, including major suppliers, such as Leader Auto Resources LAR Inc., Groupe Multipro Inc., and P.H. Vitres d’Autos Inc. who list products on the site, and car dealers and repair shops who use the NET3F marketplace to source parts.
"B2B Vertical Markets Inc. brings us the operational expertise and technology capabilities of Mediagrif needed to sustain and grow our business. It also provides the capital necessary to expand across Canada and eventually the United States," commented Reynald Fortier, Chief Executive Officer of NET3F.
"NET3F brings the essential elements for a successful marketplace to a critical mass of customers–transactional functionalities and value added solutions," stated Denis Gadbois, President and CEO of Mediagrif and President of B2B Vertical Markets. "These elements, combined with NET3F’s management expertise, make it a sound investment for B2B Vertical Markets. This initiative allows Mediagrif to demonstrate the adaptability of its technology and the value of its operations in another important industry."
"This opportunity presents a sound business model that creates value for all participants," commented Tom Wolf, senior vice-president, eBusiness at Royal Bank. "We have explored a number of opportunities since announcing our strategic alliance with Mediagrif and this deal successfully met all our criteria for success and best strategic fit. Mediagrif has built a profitable business by making sure that all the elements needed for a successful vertical marketplace are present and Royal Bank subscribes to that approach."

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