INTERNET SECURITIES, INC. : BUILDING A BUSINESS IN INTERNET TIME

RECOMMENDATION
We conclude that rightly Internet Securities has accepted the offer of $43 million for 80% of the company by Euromoney PLC. The offer covered the market value of the company which at the time of acquisition had a total post money valuation of around $50 million. Another favorable part of the deal was the fact that I.S. management has ensured the option at any given time to spin out the company and go public. In retrospect, the decision proved out to be correct since most of the dot-com companies who went public at that time, by 2000 have lost on average more than 60% of their market value.
Apart from that, this deal represented not just incremental evolution, but a fundamental transformation of the company, to enhance its sustainability by teaming up with Euromoney PLC to block competition.

HISTORY
Internet Securities Inc. (I.S.) founded in June 1994, by the brothers Gary and George Mueller. Their idea was to organize a company that provided hard-to-find financia...