On September 1, 2009 Channel Intelligence announced the acquisition of certain key assets of Vcommerce Corporation. We have posted the following to answers to many commonly asked questions.

How will the products offered by Channel Intelligence change, and what impact will it have on CI’s platform?

The addition of the Vcommerce storefront, order processing and fulfillment services to CI’s online advertising, product content and channel management services will create elevate CI to a leading provider of Commerce Platform as a Service (PaaS) solutions. As CI has a long history of working with global manufactures and retailers, the new offerings provide a unique product set to the retail marketplace.

What does this acquisition mean to current CI customers?

The acquisition of the Vcommerce Storefront, Order Management and Fulfillment assets will bring CI significant new product offerings through a more complete set of performance-based services to manufacturers, retailers and online publishers.

Will the former Vcommerce be run out of Orlando or will it remain in Scottsdale, AZ?

Part of the acquired assets included the Scottsdale facility.  CI now has corporate offices in both Orlando, FL and Scottsdale, AZ.

Did CI retain any former Vcommerce employees? If so, how many were kept and what is the overall headcount today?

As part of the acquisition of the key assets of Vcommerce approximately 25 employees that remained at Vcommerce were offered jobs at CI. This brings the current number of CI employees to about 150.

How did this acquisition impact CI's profitability?

CI is currently EBITDA positive and will continue to be so after this acquisition. CI will continue to aggressively invest in new services for its customers, with a strong concentration on social and performance-based advertising.

Does CI now own Vcommerce?

CI purchased key assets of Vcommerce Corporation including the technology, services and Vcommerce brands. CI does not own the former Vcommerce Corporation.

Will there be any change in services rendered for the Vcommerce customers now under CI’s management?

All CI customers should see an improvement in the already excellent responsiveness as CI resources increase with addition of another national location.

Vcommerce leveraged off-shore resources as a part of its operations, will CI continue that practice?

CI and Vcommerce shared a common strategy in supplementing its key local workforce with outsourced labor, when appropriate. Any outsourced labor is always limited to non-strategic areas and this will continue. Amazon Mechanical Turk is an example of the types of outsourcing used by CI.

With the 4th quarter fast approaching, are there any concerns around system integrations and how that may impact customers during the critical holiday period?

CI has a stellar track record regarding system performance during the holiday period and customers will receive the same level of security and system performance they have relied on from both CI and Vcommerce in the past.