Intershop Communications AG | Press Release |
Mexx Direct first major customer for Intershop and Fiege-PVS's joint full-service business
Service order to full revamp online business for activities at Mexx
- Reference order will generate up to EUR six million over five years for Intershop
- High potential for increased income through sales-based compensation model – growth in step with the customer
- New platform to be marketed to additional customers
Jena (Germany), March 24, 2009 – Intershop Communications AG announced that it has received today a comprehensive service order from Fiege-PVS GmbH, a subsidiary of PVS and Fiege a logistics company with sales of over EUR 1.8 billion, to full revamp online business for activities at Mexx, the well-known international fashion brand.
Under the sales-based compensation model that is typical for its full-service business, Intershop will receive a percentage of Mexx's sales via its online shops. The contract has a minimum term of more than five years. Guaranteed minimum sales for Intershop will be approximately EUR 3 million, but the Company expects to generate revenues of between EUR 4 and 6 million over the term of the contract assuming normal growth of the online shop.
Intershop will operate the new sales platform, which is based on Enfinity Suite 6, for Mexx's international online business from its headquarters in Jena, as well as providing technical upgrades and extensive support services. Intershop partner Fiege-PVS, will handle the logistics processes and commercial services. Mexx is responsible for marketing, the product range, and production.
The deal represents an important order for Intershop's full-service e-commerce business area. It will be implemented using a new, comprehensive Intershop reference application that will enable international sales solutions to be deployed quickly at additional customers. Although the application has initially been optimized for the fashion industry's requirements, it is not limited to this sector.
Intershop sees this platform as an important milestone in its development from a software provider to e-commerce company covering the entire value chain for online sales together with its partners, a move that will allow it to profit from the sustained strong growth in the global Internet business.
"This business partnership allows Intershop to fully play to its strengths in the area of technology, internationalization, and systems integration. We will rapidly expand support to a large number of additional countries, flexibly expand existing functionalities, and quickly integrate all required systems at both Mexx and Fiege-PVS to produce an end-to-end e-commerce entity," said Intershop Management Board member Henry Göttler. "All three business partners have a strong common interest in Mexx's online success. Our revenue expectations could be exceeded in the case of an extremely strong Internet performance by the Mexx brand. Together with our partner Fiege-PVS, we are aiming to market our reference application to additional customers, including ones outside the fashion sector."
Heinz Karow, Managing Director of Fiege-PVS, notes: "For us the contract is a logical result of the partnership with Intershop. Together, we are contributing the expertise needed to produce an end-to-end, technically highly integrated process chain for online sales, which will enable Mexx to migrate rapidly and successfully to a system with substantial future potential."
"There were a number of good reasons why we decided to go with Intershop and Fiege-PVS following our thorough evaluation of different providers and options. Both companies are experienced and proven specialists in their segment and have also shown themselves to be a well-oiled team in recent months," says Jesko Breuer, Managing Director of Mexx Direct, explaining the decision.
Intershop Communications AG (founded in Germany 1992; Prime Standard: ISH2) is the leading independent provider of omni-channel commerce solutions. Intershop offers high-performance packaged software for internet sales, complemented by all necessary services. Intershop also acts as a business process outsourcing provider, covering all aspects of online retailing up to fulfillment. Around the globe more than 300 enterprise customers, including HP, BMW, Würth, and Deutsche Telekom run Intershop solutions. Intershop is headquartered in Jena, Germany, and has offices in the United States, Europe, Australia, and China. More information about Intershop can be found online at www.intershop.com.
This news release contains forward-looking statements regarding future events or the future financial and operational performance of Intershop. Actual events or performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such difference could include, among other things: Intershop's limited operating history, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, significant dependence on large single customer deals, consumer trends, the level of competition, seasonality, risks related to electronic security, possible governmental regulation, and general economic conditions.