iXL Enterprises Soars on Marketing Agreement With Gateway

Gateway will also take a $150 million equity stake in iXL's subsidiary, Consumer Financial Network.
Publish date:

Shares of

iXL Enterprises


surged Thursday after the Internet services company announced a joint marketing agreement with computer maker




In addition, the companies said San Diego-based Gateway would take a $150 million equity stake in iXL's subsidiary, the

Consumer Financial Network

, subject to regulatory approval.

Atlanta-based iXL shares jumped 1 9/16, or 11%, to 15 1/2 Thursday morning. (iXL closed up 3/4, or 5%, at 14 11/16.) Gateway moved up 1 1/16, or 2%, to 48. (Gateway finished up 15/16, or 2%, at 47 7/8.)

The Gateway investment, which comes on the heels of a $130 million capital infusion completed in March from other investors, would effectively reduce iXL's majority ownership in the

Consumer Financial Network

to a minority interest upon completion of the deal, the companies said.

iXL, however, will remain CFN's largest-single shareholder with a 48.5% stake. The Consumer Financial Network provides employee benefit and human resources services on Web sites for about 350 organizations, including

Delta Air Lines


Merrill Lynch