SPARK invests in 4th Contact
NewMedia SPARK PLC
7 June 2001
7 June 2001
NewMedia SPARK invests £1m in 4th Contact
NewMedia SPARK plc ('SPARK'), today announces that it has invested £1,000,000
in 4th Contact, a developer of software applications for the administration
and communication of employee benefits.
4th Contact was founded in 2000 by an experienced team of entrepreneurs who
had previously founded their own IFA firm, Caversham Buchanan. Its
applications allow employees to access personalised web pages giving real-time
information on the value and terms of their personal benefits, including
pensions, medical and life insurance and share options. The information is
accessed either via secure Internet sites or corporate Intranets. The
applications also bring improved efficiency and cost savings to an
organisation both through the increased effectiveness and reduced costs of HR
functions as well as the resulting improvement in employee motivation and
retention.
4th Contact's first product, Working Wealth, is the UK's fastest selling
on-line employee benefits management service. Working Wealth was launched in
August 2000 and has already been adopted company-wide by customers including
Star Internet, Comstor, Quality Plus and Message Labs. The service is
initially being targeted at smaller organisations able to implement the
service rapidly. The service is sold direct and by twenty leading IFAs, HR
consultants and benefits consultants.
Commenting on the investment, Andrew Carruthers, COO at NewMedia SPARK said:
'We are very pleased to have invested in 4th Contact at this early stage. We
were impressed by the strength and experience of the management team and the
increasing market demand for benefits applications. In addition, there are
clear synergies between 4th Contact and the other financial services
businesses within the SPARK portfolio. We look forward to working with the
4th Contact team to maximise the potential of this exciting young business.'
Paul Watson, CEO of 4th Contact said:
'When working in the IFA industry, we recognised the demand for benefits
software which brings advantages to both employees and employers. We
estimate spending on benefits administration applications in the UK will be £
220m this year, increasing to £380m by 2003. While the market is developing
rapidly in the US, there was a clear unfulfilled market opportunity for such
products in Europe. The take up of our products to date demonstrates this and
we look forward to working with the SPARK team to build on our early success.'
For further information, please contact:
Fenella Copas
NewMedia SPARK 020 7851 7777
Lawrence Dore/Victoria Martin
Mantra PR 020 7072 2300
Paul Watson
4th Contact 020 7203 3609
NewMedia SPARK plc
Listed on London's Alternative Investment Market, NewMedia SPARK plc is a
leading early stage investor in the telecoms, media and technology sectors.
SPARK currently has a portfolio of investments in over 50 companies in Europe
and India. SPARK focuses its investments on software applications,
communications infrastructure businesses and certain areas of digital media
such as music and financial products, typically investing between £0.5 million
and £2 million. SPARK has operations in London, Stockholm, Berlin and Madrid
and has established a presence in India. For further information see
www.newmediaspark.com.
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