VirtualNet acquires NECX Exchange for £65m

Electronics professionals get online access to vast inventory

Web-based trading company VirtualNet will acquire the component broker NECX Exchange to build a vast online inventory for engineers and hi-tech purchasers. The deal, split into $10 million cash and $95 million stock, will give 18,000 trading partners access to a three-million product inventory. VerticalNet runs over 50 industry-specific Web sites and will gain access to NECX's large user base through the deal. NECX will gain from putting itself online, heading towards its president's one-stop-shop dream. Following the acquisition, the company intends to sign up supply partners to get costs down. NECX deals with semiconductors, electronic components, computer products and networking equipment. It made a $37 million profit on $350 million revenue last year, and has headquarters in the US, Singapore, Ireland, and Sweden. ®