The Active Network Merges With Myteam.Com
Merger Pairs the Definitive Technology and Marketing Service Leaders in Participatory Sports;$11M Funding Round Closed for Combined
Entity, Validating Utility of Services and Revenue Model
LA JOLLA, CA – WOBURN, MA – Dec 17, 2001 – The Active Network, which provides leading technology and marketing solutions for the three major segments of the participatory sports and recreation market, has merged with Myteam.com, a leading online center for the team sports community and a direct marketing company that enables communications among players, parents, coaches, league administrators, fans and corporations involved in amateur sports. In conjunction with the merger, the combined entity – which will operate as The Active Network – has closed approximately $11 million in a new round of venture funding.
For Myteam.com CEO Elliot Katzman, who has played key executive management roles in several successful start-ups, the merger is a major success for both companies. “The Active Network and Myteam.com are the true leaders in this market and have been simultaneously focused on providing valued services to the participatory sports marketplace. The merger offers a tremendous opportunity to use our resources in the most productive way, providing partners like Little League Baseball, the National Football League and over 15 state soccer relationships the best service possible,” explained Katzman, who will assume a role on The Active Network’s board of directors. “We now have a combined group of premier investors, world class partners, loyal customers and leading edge technology, supported by a strong business model that will further ensure our long-term success. All of these factors present a very strong case for why this merger makes sense.”
Both companies have established themselves in the participatory sports market by leveraging the Internet to create utility for participants and organizers in participatory sports and recreation. The new funding will be used to drive the continued growth and development of services for the market and will also ensure an efficient integration process for the combined company.
“The combination of Myteam.com and The Active Network, with our teams, individual sports and park and recreation products, creates the clear leader in both registration and direct marketing access to the participatory sports world,” said Dave Alberga, president and chief executive officer, The Active Network. “Rather than working competitively toward the same goal, we now have two undisputed market leaders pooling resources, technologies and talents to build the best products and services for the participatory sports market. We’re looking forward to sharing these successes with our partners and customers worldwide.” Partners such as Little League Baseball, an organization that has had a long-term, special relationship with Myteam.com, agree. “Little League Baseball has made significant inroads in applying technology to our programs. As the world’s largest youth sports program, we are committed to further utilizing the Internet to provide services to our 7,500 leagues in over 100 countries,” said Stephen D. Keener, president and chief executive officer of Little League Baseball. “We have had a very positive experience working with Myteam.com and look forward to building on this success with Myteam.com and The Active Network in the future.” The new funding round was led by two of the companies’ existing venture funds: Canaan Partners, a significant Myteam.com investor and national venture capital investment firm with more than $1.2 billion under management; and DB Capital Venture Partners, key investor of The Active Network and the venture capital unit of DB Capital Partners, the private equity arm of Deutsche Bank AG. Additional investments came from Austin Ventures, Charles River Ventures, Dominion Ventures, North Bridge Venture Partners and Ticketmaster (NASDAQ: TMCS).
“With its best of breed partners, range of communication, database management and league administration services and unique infrastructure, Myteam.com has established itself as a leader in the amateur sports market. The company now has an opportunity to join forces with a similar market leader to drive services for all organizers, participants and corporations in the sports and recreation market,” added Steve Green, general partner, Canaan Partners. “Through this new round of funding, we’re showing our strong support for the merger, the business model and the team that will execute it.”
Phil Black, managing director of DB Capital Venture Partners, agreed. “We are excited to make this follow-on investment. The Active Network has clearly proven the value it brings to sports enthusiasts for all types of recreation and at all levels of participation in team and individual sports. These funds will enable the company to continue to create a very large and dominant provider of registration and team communication services for the sports and recreation world.”
Through organic growth, mergers and acquisitions, The Active Network has achieved market leadership among the core segments of the participatory sports space: individual and team-based sports; and park and recreation.
Through its Web properties, Active.com (www.active.com) and eteamz (www.eteamz.com), The Active Network is best known for its proven Web registration engine. This represents a core revenue stream and has enabled organizers to easily and seamlessly put their individual sports events, teams and leagues, and park and recreational activities on the Web for participants, players and families to learn about, register and pay for online.
Expanding its market reach for registration and services, the company acquired eteamz in December 2000 – a long-time competitor of Myteam.com – and prior to this, merged with recreation management software leader Sierra Digital. Throughout 2001, The Active Network has been successfully applying its Web registration model to a customer base that now includes more than 1,000 park and recreation agencies throughout North America and nearly 700,000 teams with Web sites on www.eteamz.com.
Woburn, Mass.-based Myteam.com has focused exclusively on the team and league market segment since its inception. The company has created online and offline team/league administrative and communication tools to serve the needs of the amateur sports community and has quickly become an institutionalized part of how teams and leagues communicate with their members and manage their rosters, schedules and other administrative functions. Myteam.com has fostered the growth and popularity of its services through exclusive relationships with prominent and influential amateur sports organizations. These relationships encompass more than 30 sports, 12 million players and 30 million community members and include Little League Baseball, National Football League, Amateur Softball Association, Amateur Athletic Union, more than 15 State Soccer Associations and Major League Baseball’s Reviving Baseball in Inner Cities program.
Myteam.com also offers marketing solutions to a number of premier direct marketing partners that include POWERaDE, RC Cola, Honda, Dunkin’ Donuts, LEGO and MasterCard, helping corporations activate national marketing programs at local levels.
About Canaan Partners
Canaan Partners (www.canaan.com) is a national venture capital investment firm formed in 1987. Canaan specializes in startup and emerging-growth companies in information technology and services, as well as health care and medical technology. Canaan Partners was an early backer in AdvancePCS (ADVP), Capstone Turbine (CPST), CommerceOne (CMRC), Concord Communications (CCRD), Copper Mountain Networks (CMTN), Esperion (ESPR), Genaissance Pharmaceuticals (GNSC), International Network Services (INSS), IntraWare (ITRA), Interact Commerce (IACT), iPrint (IPRT), Network Engines (NENG), ONI Systems (ONIS), Orapharma (OPHM), Pozen (POZN) and Praecis Pharmaceuticals Inc. (PRCS), along with dozens of other market-leading companies.
About DB Capital Venture Partners
DB Capital Partners is the private equity arm of Deutsche Bank AG, one of the world's largest financial institutions. With a global team, DB Capital Partners invests in equity and equity-related securities including venture capital, growth financing, leveraged buyouts, mezzanine and private equity funds. DB Capital Venture Partners is the venture capital arm of DB Capital Partners. DB Capital Venture Partners North America focuses on early-stage and emerging growth businesses in telecom, software, Internet infrastructure and healthcare services and devices. For more information, please visit www.db.com/dbcapitalpartners.
About Deutsche Bank
With assets of almost 1 trillion Euro and over 97,000 employees, Deutsche Bank offers its clients unparalleled financial services throughout the world in over 70 countries. It ranks among the leaders in asset management, capital markets, corporate finance, custody, cash management and private banking. The keys to the Bank's success remain constant: customer focus, the spirit of innovation, a broad range of product skills combined with technological power and financial strength delivered by highly skilled professionals. For more information, please visit www.deutsche-bank.com.
Myteam.com, the leading online center for the entire amateur sports community, is a direct marketing company that utilizes new media to facilitate communications among all those involved in amateur sports – players, parents, coaches, league administrators and fans. By serving as an ASP to its partners, Myteam.com is able to facilitate a direct communication between its members and corporations interested in reaching this audience. Everyone who joins Myteam.com receives a free, secure, personal home page, which stays with them from season-to-season, sport-to-sport and year-to-year. Here, information is presented and updated automatically in one place for all teams and leagues with which a member is associated. Myteam.com’s online store, the Myteam Marketplace, is the one stop resource for everything from fundraising and equipment to awards and trophies. Myteam.com’s unique attributes include its site architecture, which features personalization/targeting capabilities, and its exclusive relationships with premier amateur sports organizations, encompassing more than 30 sports, 12 million players and 30 million community members.
The Active Network
The Active Network, Inc. is a leading provider of technology and marketing solutions for the participatory sports and recreation industry. The company’s network of online and offline properties, which includes Active.com (www.active.com), eteamz (www.eteamz.com), RecWare (www.recware.com) and Active Sports Marketing Group, provide registration and data management tools, enterprise software systems, Web site development, advertising and sponsorship opportunities, and commerce and membership benefits. Located in La Jolla, California, The Active Network and its properties generate an estimated 50 million monthly page views, provide registration for more than 20,000 events and leagues worldwide, and deliver offline recreation management solutions to more than 1,000 park and recreation agencies in North America. For more information, visit www.theactivenetwork.com or call 1-888-543-7223.
Shelly Burnside (media)
The Active Network
Ph: 858-551-9916 ext 145
Elliot Katzman (media, financial)
Ph: 781-376-9944 ext 505
Scott Kyle (financial)
The Active Network
Ph: 858-551-9916 ext 126