ICC Technologies Inc, a company that is trying to carve out an internet content business for itself to try and reverse the graceful downward slope of its share price has gone to the center of the content business, New York’s Silicon Alley and acquired Rare Medium Inc for $45m in stock cash and notes. ICC – through its Fresh Air Solutions unit – designs, manufactures and sells humidity control systems and this is its first foray in to the internet business. Rare Medium does internet consulting as well as content development. Rarer Medium president and CEO Glenn Meyers retains his position within the new ICC. ICC chairman Irwin Gross described Rare Medium as one of the great opportunities in America today. ICC has had to pay the usual multiples to get into this business; Rare Medium expects revenues of about $10m this year a profit, albeit at the operating level. Last year its revenues were $4.0m with pre-tax profits of $968,000. ICC paid $10m in cash, $22m in notes with the rest in stock. Gross compared Rare Medium to USWeb and dropped the names of lots of internet poster children to justify the dramatic shift in direction. We just hope they know what they’re getting themselves into.
