surged 11% in afternoon trading Monday after the company said it had struck a deal with
, an online marketplace for companies involved with fluid processing.
Chemdex closed up 9 13/16 to 100 3/4 as another application in the business-to-business market excited investors. The Palo Alto, Calif.-based company allows suppliers to buy and sell primarily life science research products through its vertical marketplace.
The fluid processing market includes companies from industries including: chemical, oil, gas, pulp and paper, power generation and pharmaceuticals. Chemdex hopes to grab a large part of the estimated marketplace of $75 billion in new products globally as companies exchange products like pipes, valves, pumps, and compressors on the Internet.
The newly formed company will initially receive $30 million in cash, with $10 million from
, the venture capital side of
, and other investments from Chemdex, DuPont, and other unnamed sources.
Chemdex has already spent $5 million on the venture and will own 40% of Industria, chief executive David Perry said in an interview. They will focus on the titans of the industry like
, Perry said.
Separately, @Ventures and CMGI announced Monday a $1 billion venture capital fund to focus on Internet technology and infrastructure companies like Industria.
Industria is an independent entity with its own management team and board of directors being assembled. Chemdex president and chief executive David Perry, DuPont executive vice president and chief operating officer Dennis Reilley, and Jon Callaghan, a general partner with CMGI's @Ventures, have joined Industria's board of directors.
"Industria has enormous momentum. We have, and continue to build, a talented and seasoned management team from leading Fortune 500 companies,'' said Dean Dorman, interim chief executive of Industria. Employees of Industria are currently developing an initial version of Industria's B2B e-commerce solution, he added.
Industria will allow customers to use real-time pricing, electronic requests for quotations, auctions and reverse auctions to access products and information in the industry, according to a Chemdex report.
Industria customers will be able to access a broader, more competitive supply base online and lower product prices in less time, according to the report.
Manufacturers, Chemdex said, will benefit from reduced marketing and selling costs, wider customer reach with greater visibility, improved inventory management and access to valuable information about buying trends.
Distributors will have exposure to a broader, more competitive supply base, lower sales and marketing costs through increased efficiency, and access to new customers. Industria will come public within a year, according to Chemdex chief executive Perry.