uMember.com to Acquire the Success Companies

Posted on January 11, 2001

uMember.com< has announced that the company has entered into a letter of intent to acquire The Success Companies LCC, a Raleigh, N.C.- headquartered multimedia company that serves small and home office entrepreneurs through its publications, online community, seminar and event divisions. Under the proposed agreement, Los Angeles-based uMember.com, would acquire The Success Companies in a stock transaction valued at approximately $75 million.

uMember.com will integrate its online community and discount store with the multimedia company's online division, Success Online. The combined company would incorporate the Success community site and browser and become the cornerstone of an enhanced Success community, communications platform and Internet Service Provider for Internet users in the small office and home office market. The enhanced site is to be launched in the first quarter of 2001.

The acquisition architect is Orie Rechtman, chairman and CEO of uMember.com. The transaction is expected to be completed later this month and would enable the continued development of Success products including two nationally distributed publications: the 110-year-old Success Magazine (1,000,000 monthly readership) and Working at Home Magazine (300,000 quarterly readership); Success Online (successonline.com); Success Events; and the Peter Lowe Success Seminars.

Rechtman believes the acquisition of The Success Companies will result in added value for both operations, improve their ability to provide quality products and services and allow further expansion of their business plans. ``We believe the 'bricks-and-clicks' business model reflects the changes that technology has brought to bear on the traditional 'brick-and-mortar' economy,'' he stated. ``The business fundamentals that brought success to the 'brick-and-mortar' world will now be applied to this new model. We anticipate that consumers will be more likely to accept this model over a pure Internet experience,'' he continued.