Catenas Inc. Launched As Global Next Generation Professional Services Company
Catenas incorporated in the United States – A total of 54.68 million USD cash and stock invested into the company, and an additional 16.6 million USD raised as a loan facility. – The implicit closing valuation of Catenas Inc. is 188 million USD. – 2M Invest A/S is lead investor in the company. – Catenas Inc. has invested in 11 best of breed service providers in the areas of strategy consulting, branding, marketing, business intelligence and technology implementation. – These member companies are in thirteen countries on five continents. – Catenas unites the companies in a unique network for profitable growth and delivery of superior traditional and online services. – Present clients include global leaders in their respective industries.
The next generation professional services company is a reality. Catenas combines best of breed companies in strategy consulting, branding and strategic marketing services on a global scale. Its unique network structure permits the group to deliver superior client services.
Catenas brings together a distinctive collection of outstanding business and technology authorities to the field, including Regis McKenna, David Aaker, John O’Neil, Chris Outram, John Zysman, Miranda Junowicz, Steven Addis, Geoff Mott, Bob Heyman, Phil Gerber, Cindy Levine, Niels Christian Nielsen, Bill McVey, David Madie, Thomas Kan, Jeff Hunter, Michael Dunn, and Jens Nielsen.
At a meeting of the Board of Directors of Catenas on Tuesday the 23nd of January in London the Board gave final approval to a number of transactions. Those transactions make Catenas a new global player in the market for professional services to enable clients to adapt their businesses to the new global competitive environment.
The approved transactions included:
Establishing Catenas Inc., a Delaware corporation with its headquarters in San Francisco, as the organizational hub of the Catenas network. Catenas Limited will continue as a wholly owned subsidiary of Catenas Inc., and the Catenas European headquarters will remain in London.
2M Invest A/S, the publicly traded Danish venture capital firm (listed on the Copenhagen exchange), is lead investor in Catenas. A combination of European, North American and Asian financial investors and companies invested a total of 54.68 million USD in cash and stock into Catenas. A further 16.6 million USD was raised as a loan facility. At the conclusion of the investment round Catenas has a valuation of 188 million USD.
Catenas Inc. has invested in a total of eleven member companies. The deals have been structured so that all of the companies join the group through Catenas’ ownership in them, while at the same time each company and/or its key employees have an ownership stake in Catenas, and thereby in the other companies as well.
Annualised consolidated numbers for the group by the end of the third quarter 2000 were revenues of 108 million USD and operating profits of 14.9 million USD. The group employed a total of 497 employees, 430 of whom are billable.
In a conservative scenario, including only the currently contemplated additions to the Catenas network, we anticipate 2001 revenues for the group of 154.3 million USD, with operating profits of 21.1 million USD.
Through its cross-ownership structure Catenas forms a unique network organisation offering superior service designed to enable profitable, global growth of its clients.
Catenas is business, not just e-business: Member companies combine expertise in online business with extensive experience in the off-line aspects of their clients’ industries. The members effectively combine these proficiencies to supply services that cover the scope of needed business innovation for the clients.
Catenas member companies are best of breed: Catenas and its member companies have never pursued headcount for its own sake. Each member company represents an area of professional specialisation and is either already recognised as world class in that field, or has strongly exhibited that potential. The Catenas network leverages its members’ skills and mutual complementarity through joint standards and procedures for project execution.
Catenas practices the ‘old virtues’ of professional services: Catenas and its members have an exhibited commitment to the time-honoured virtues of good professional service delivery, including streamlined project management, quality work product, exacting review procedures and on-time delivery. The member companies pay close attention to maintaining cash positive operations, even in periods of significant growth.
Catenas does not roll up its member companies: Catenas is a network structure that does not roll up companies and integrate them into a unified culture. Roll-ups foster professional mediocrity, and the resulting entity invariably loses personnel key to the earlier success. For member companies to remain best of breed, they must retain and nurture their unique cultures. The Catenas network respects excellence and individuality.
The Catenas network is a unique organization for growth and delivery: Catenas has the unique ability to support the organic growth of member companies. It will also grow to meet the market demands through addition of new members with added complementary skills and geographic coverage. Catenas members strengthen their offering to present clients by bringing to them the specialized skills of the other members. At the same time, Catenas members enjoy increased market access through their exposure to the other members and their clients. When working collectively, the Catenas members adhere to preset procedures that ensure seamless joint delivery.
Catenas is global in concept and practice: Our clients are global. Catenas has been conceived and will grow as a global company with a presence in all markets, both established and nascent. A significant element of the global strategy is proactive investments in emerging markets – Uganda, Bangladesh, and Malaysia to start – both to achieve early mover advantages and to contribute towards the effective and socially responsible bridging of the digital divide.
Clients of the Catenas group include IBM, Sun, Intel, Patagonia, Anheuser-Busch, Applied Materials, NEC, Hilton, Lego, British Telecom, BA, Pirelli, Fiat and Audi.
The Catenas member companies are:
Addis (brand creation): Addis is creating the brand agency of the future. The company’s passion and insight is reflected in diverse creative solutions for a wide range of international clients, such as Critical Path, Intel, the Pepsi-Cola Company, and United Distillers and Vintners. Each unique brand voice is reflected through positioning, naming, identity, web design, advertising, packaging, and retail design. www.addis.com
Eucid (business intelligence): Eucid equals world-class e-Business statistics and target group analysis. An example of a service is “Predictive Modelling” (intensive analysis of customer traffic patterns on a company website), through which Eucid predicts future developments and directs companies towards finding their best customers, potential for new products and target groups. Alternatively, Eucid prevents a company from wasting resources on non-profitable projects. www.eucid.com
Euphorion (technology architecture): Euphorion architects, deploys and maintains innovative web-based business systems. Euphorion’s rapid deployment methodology and platform of best-in-class software, services and infrastructure components generate solutions that are extensible, scalable and portable. Euphorion’s clients include 3Com, Patagonia, AT&T, Heidrick & Struggles, and the Wedding Channel. www.euphorion.com
LinuxTimes (systems integration): LinuxTimes is a pioneer in deploying Linux-based expert programming services in the areas of application development and system building for technical and software companies. LinuxTimes services include enterprise intranet and Internet application tailor-made software applications, enterprise-level user directory systems, and online banking. www.linuxt.com
The McKenna Group (business consulting): The McKenna Group is a global strategy consulting firm that combines a strong understanding of technology and fast-moving markets to create strategies that help companies lead and succeed in existing and emerging markets. The McKenna Group’ clients include IBM, Epiphany, Paine Webber, L’Oreal, United News and Media, Sony, NTT and Eli Lilly. www.mckenna-group.com
Metrocomia (web design and implementation): Metrocomia (formerly NetGuide) is a Scandinavian-based network of Web development and e-business consulting companies dedicated to facilitating the best possible solution for its clients’ businesses. Metrocomia assists brick-and-mortar businesses to establish a presence online that maximises their potential in the global marketplace. Metrocomia has established affiliates in emerging markets around the globe, including Uganda, Bangladesh and Malaysia, to create a seamless coupling of global expertise with local adaptability. Metrocomia’s clients include British Airways (Uganda), NEG Micon, KFK and Netto. www.metrocomia.dk
New Canoe (relationship marketing): New Canoe, an expert in Internet “Audience Development,” designs and deploys integrated online customer acquisition and retention programs to help clients build profitable online relationships with their customers. This includes online marketing strategy, media buying and planning, e-mail marketing, incentive marketing (promotions and sweepstakes), affiliate programs, Search Engine Optimisation and Loyalty Programs. New Canoe has created solutions for ABC.com, NEC, Birkenstock, e-Wanted, The Executive Committee (TEC), and Shopping List, among others. www.newcanoe.com
OC&C Strategy Consultants (strategy and business consulting): OC&C undertakes assignments for major domestic and multinational corporations, helping them define market, competitive and investment strategies. While having developed particular insight into the convergence (telecommunications, computing and media) industries, Fast Moving Consumer Goods and retailing, OC&C serves clients in almost all market sectors in over forty countries. (Due to delays in the legal process, Catenas will close the deal with OC&C in February 2001). www.occstrategy.com
Prophet (brand and business consulting): Prophet is a strategic professional services firm committed to accelerating clients’ brand-driven business growth in a dynamic economic environment. Prophet focuses on brand leadership, e-business and strategic growth initiatives. Prophet’s approach is to fuse business, brand and technology perspectives into world-class strategies and implementation programs for clients in a range of industries. Prophet’s clients include adidas, NCR Teradata, Audi, UBS, Williams-Sonoma, TXU, and Knight Securities. www.prophet.com
A number of additional member companies are expected to join Catenas within the coming months.
For further information about Catenas and the member companies please visit us online at www.catenas.com or contact us at [email protected]
The McKenna Group announces an important Event Sponsorship:
Siliconindia’s Second Annual Technology and Entrepreneurship Conference And Leadership Awards
Updated 6:47 PM ET October 3, 2000
NEWARK, Calif., Oct. 3 /PRNewswire/ – The best brains, smartest capital and coolest technologies are ready to come together at the Siliconindia Annual Technology & Entrepreneurship Conference and Leadership Awards in the heart of Silicon Valley on October 14 & 15. This conference will bring together top venture capitalists, entrepreneurs, professionals and academicians to take the 1000+ audience through the entire spectrum of the technology world.
Venue: Fairmont Hotel, San Jose, CA Date & Time: October 14-15, 2000, 7 a.m. onwards http://www.siliconindia.com/events
Mike Moritz, General Partner, Sequoia Capital – one of Silicon Valley’s pre-eminent VC will deliver the opening keynote. He’s the man who first funded Yahoo!, and sits on the boards of Agile Software (NASDAQ:AGIL), PlanetRx (NASDAQ:PLRX) and WebVan (NASDAQ:WBVN).
The innovative, intense, CXO Roundtable will be moderated by Vinod Khosla, General Partner at Kleiner Perkins Caufield & Byers, former founding CEO of Sun Microsystems, and the VC behind such successful companies as Corio, Juniper, Redback and QWEST. This will be a one-of-a-kind gathering of top executives to discuss “Leadership Challenges in the 21st Century.” This roundtable is sponsored by: e4e, eGain & Zkey.com
At 7 p.m. on October 14, the stage will come alive as the industry’s who’s who honor this year’s Siliconindia Leadership Award winners:
Lifetime Achievement: Hatim Tyabji, former CEO, Verifone & Serraide.com, board member, Ariba (NASDAQ:ARBA)
Entrepreneurship: Vivek Ranadive, Founder, Chairman & CEO, Tibco (NASDAQ:TIBX)
Corporate Leadership: Clarence Chandran, COO, Nortel Networks (NYSE:NT)
Venture Capital: Raj Singh, General Partner, Redwood Venture Partners
Academics: Prof. Pradeep Khosla, Carnegie Mellon University
Winners of the other five Siliconindia Awards in the categories of Startup of the Year (US); CEO of the Year (US); Company of the Year (India); Deal of the Year and Technologist of the Year, for which hundreds of nominations have been received will be announced live, and awards will be presented to the winners by well-known technology industry personalities.
Inv-Ent (Investor – Entrepreneur Forum)
After the tremendous success of its Inv-Ent forums around the US, this conference will feature more than 25 companies presenting their business plans to exclusive panels of high-profile VCs and angels investors. Sponsored by The McKenna Group.
Besides these special engagements, the conference will feature top speakers discussing trends in VC, wireless (including panelist Mike Powell, VP – McKenna Venture Accelerator), Internet, e-services (including panelist Pam Kline, Partner – The McKenna Group) and communications. Plus: an Expo where leading companies will display products and services; and workshops on executive training, corporate leadership, investing in India, globalization and going public.
Siliconindia looks forward to hosting you at the most exciting, energized and high-powered events of the year!
OTHER EVENT SPONSORS:
Accelerated Networks (NASDAQ:ACCL), Asera, Cognizant (NASDAQ:CTSH), Comstellar Technologies, Euclid, Exterprise, India Technology Fund, iScale, KPCB, Mayfield Fund, Mvion, Netcontinuum, On Semiconductors, Pillsbury Madison & Sutro, Riverstone Networks, Sequoia Capital, Silicon Valley Bank (NASDAQ:SIVB), Speedera, Tibco, WebEx (NASDAQ:WEBX) & Zkey.com.
Ziasun Finalizes The Venture Fund Agreement With The McKenna Group And Anticipates Selling Its Subsidiary MII
SOLANA BEACH, CALIF – August 2, 2000 (PRNewswire) – ZiaSun Technologies Inc. (OTCBB: ZSUN) (www.ziasun.com), a diversified Internet-based holding company, today announced it has finalized the Agreement with The McKenna Group to create MKZ, a new venture fund, which is structured to make highly selective investments in early-stage, primarily business-to-business (B2B) Internet technology companies. The Company also announced it is negotiating the sale of its subsidiary, Momentum Internet Incorporated (MII), back to the original owners, Vulcan Consultants Inc.
In the sale of MII back to Vulcan Consultants, Vulcan will exchange 725,000 shares of ZiaSun stock, which Vulcan currently holds, for total ownership of MII. Consummation of this sale is contingent on finalization of mutually agreeable terms and conditions for both parties, and is currently expected to be completed by mid August
In completing the sale of MII, ZiaSun would no longer have an interest in the following subsidiaries of MII: Momentum Associates Ltd, Momentum Internet (Phils.) Inc., AsiaEnet Ltd., Graphia International, Swiftrade Inc., or the following websites of MII: “Momentum Internet” (www.momentumplus.com), “PinMail” (www.pinmail.com), “MediaHits” (www.mediahits.com), “Swiftrade” (www.swiftrade.com), “Working Mouse” (www.workingmouse.com), “AsiaEnet” (www.asiaenet.com), “TigerTooth” (www.tigertooth.com), “TigerHits” (www.tigerhits.com), “Search Dragon” (www.searchdragon.com), “M-Finance” (www.mfinance.com) and “Ming Stores” (www.mingstores.com).
Allen D. Hardman, President and CEO of ZiaSun stated, “We believe the sale of MII will prove quite positive for ZiaSun as MII has not met earnings expectations. Whereas, the Venture Fund Agreement with the McKenna Group will provide ZiaSun with desirable, early equity positions in emerging, high-tech companies with market-leading technology. Additionally, management anticipates its investment in the newly-formed venture fund will provide favorable returns on investment, which should effectively bolster the Company’s operating strategy.”
Hardman further commented “This new strategic relationship with The McKenna Group is very significant for ZiaSun, and it is intended to help accelerate the Company’s business growth by providing the Company access to global market opportunities to which it could not otherwise cost-effectively gain exposure on its own. Equally important, the Agreement gives ZiaSun early access to Class-A start-up opportunities working jointly with other seasoned venture investors, who have many years of demonstrated successes. Management believes this is an exciting major step forward in fulfilling ZiaSun’s vision to become a world-class business incubation and holding company with unlimited growth opportunity, and one which is intended to provide a positive future impact on shareholders’ equity.”
Geoff Mott, the Managing Partner of The McKenna Group observed that “ZiaSun has successfully built businesses with compelling value propositions in several areas of the ‘Internet’ economy. Our venture accelerator works with technology- oriented start-ups that are building business infrastructure and services for this new economy. We believe the relationship with ZiaSun will yield a series of business initiatives that leverage our complementary skills and ZiaSun’s existing success model to outstanding effect.”
About ZiaSun Technologies, Inc.
ZiaSun Technologies, Inc. is a leading Internet technology holding company focused on international investor education and e-commerce. It specializes in online support services within North America, Asia and other international markets. The Company’s portfolio *currently includes: Online Investors Advantage (www.i-advantage.com), Momentum Asia, Inc. (www.momentumasia.com), ServiceLive (www.servicelive.com), Momentum Internet, Inc. (www.momentumplus.com), PINmail (www.pinmail.com), MEDIAhits (www.mediahits.com), Swiftrade (www.swiftrade.com), AsiaEnet Ltd. (www.asiaenet.com), Tigertooth (www.tigertooth.com), Search Dragon (www.searchdragon.com), M Finance (www.mfinance.com – a top-100 financial Web site), and a 19 percent equity position in Asia4Sale (www.asia4sale.com).
*NOTE: It is anticipated that certain holdings are going to be sold back to Vulcan as set forth in paragraph three of this Press Release
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release that my be considered forward-looking statements could be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected. These include uncertainties in the market, competition, legal, success of marketing efforts and other risks detailed from time to time in the company’s SEC reports. The company assumes no obligation to update the information in this release.
ZiaSun Technologies Inc.