on Monday announced a three-year strategic alliance to provide business users of several AOL brands with a business-to-business marketplace that uses PurchasePro.com's technology.
Under the "multimillion-dollar" marketing and development agreement, the companies will co-develop a business exchange for AOL's business users across AOL, AOL.COM, CompuServe and Netscape Netcenter. PurchasePro.com of Las Vegas will provide the technology for the interactive marketplace, which allows users to source, bid, negotiate, buy and sell their products and services over the Web.
AOL and PurchasePro.com will also work together to develop e-commerce technologies, the companies said in a joint statement.
PurchasePro.com surged to 160 13/16 in pre-opening trading from Friday's close of 151 3/4. AOL of Dulles, Va., was unchanged at 64 3/4.
"Our co-branded marketplace will deliver each business a solution that will give them the ability to manage the electronic buying and selling process with greater ease-of-use and convenience," Bob Pittman, president and chief operating officer of America Online said in a statement.
The co-branded AOL/PurchasePro.com business marketplace is expected to become available by the end of second-quarter 2000.
Under the terms of the agreement, the two companies will share advertising and transaction revenue and AOL will have the opportunity to earn performance-based warrants. PurchasePro.com will also distribute a co-branded version of AOL Instant Messenger on its Web site, enabling PurchasePro.com customers to communicate with buyers, suppliers and others in real time.