E-commerce pioneer Commerce One Inc is selling its core supplier relationship management division and other assets to a group of investors as it starts to wind down its business.
Commerce One announced yesterday that it has signed a letter of intent with a private investment group comprised of ComVest Investment Partners LLC and DCC Ventures.
Commerce One said it is confident the supplier relationship management (SRM) division will continue to operate under the wing of ComVest and DCC. Other assets of the sale include Commerce One’s Conductor line of business, a platform suite for process management.
The company had hinted against such a move in May this year saying that it was no longer actively pursuing the sale of these applications and would instead bump up its sales efforts in this area as well as its Conductor line of business.
San Francisco-based Commerce One has been seriously seeking a suitable exit strategy since August this year when it revealed it was planning to file for Chapter 11 bankruptcy protection.
The company has done pretty well to survive four years after the dot.com bubble burst. But its decline has been apparent nonetheless. In its most recent financial quarter, ended June 30, revenue plummeted to $2m, down from $8.3m last year. During the quarter the company also racked up a net loss of $5.1m.
The figures are in stark contrast to heady days of 2001 when it reported revenue of $408m, but also a hefty net loss of $2.6bn.