Odimo.com announced today it will team with global expansion partner SOFTBANK International Ventures to form a series of joint ventures that will establish Odimo.com operations worldwide. Odimo.com has entered into agreements with @viso, a joint venture for continental Europe between SOFTBANK and Vivendi, and eVentures, a joint venture in the UK between SOFTBANK and epartners, to create joint ventures in their respective territories. Odimo.com is also entering agreements with SOFTBANK CORP. to form a joint venture in Japan, and with eVentures in Australia, New Zealand and India to create joint ventures in these countries. Agreements for expansion into Latin America and Asia (excluding Japan) will be negotiated at a later date.
Under the terms of the agreement, the Odimo.com joint ventures in Europe, the UK and Japan will receive $40 million in the first year followed by funding of $50 million in the second year. SOFTBANK and its affiliates will provide an additional $35 million to joint venture operations in other markets worldwide, for a total initial funding commitment of $125 million to start implementing Odimo.com's international operations. In February 2000, SOFTBANK Capital Partners invested $31 million in Odimo.com in a private placement.
Odimo.com, owned by The Steinmetz Diamond Group, a leading international diamond trading group, is positioned to offer its customers the world's largest in-house selection of certificated diamonds, fine jewelry and brand name watches. The Steinmetz Diamond Group has offices around the world with its main diamond cutting factory in South Africa. The Steinmetz Diamond Group was the company entrusted by DeBeers to craft, cut and polish the Millennium Star, a priceless 203 carat flawless diamond and the Midnight Collection, the largest and rarest collection of blue diamonds currently exhibited in the Millennium Dome in London.
``We are thrilled to extend our involvement with SOFTBANK with further partnerships with eVentures and @viso,'' said Beny Steinmetz, Chairman of the Board of Odimo.com and President of STI Ventures. ``Those partnerships will facilitate and accelerate Odimo.com's market entry into Europe, Japan, and the rest of the World, and establish Odimo as a worldwide brand.''
``Odimo.com has developed a powerful and unique business model that will set the standard for the online luxury market not just in the US but in vital markets around the world,'' said Masayoshi Son, President and CEO of SOFTBANK CORP. ``We are confident that with SOFTBANK's global Internet capabilities and Odimo.com's experienced management team, we will succeed in building Odimo.com into the leading Internet source for diamonds and jewelry worldwide.''
Odimo.com has access to a large worldwide inventory of certificated diamonds, fine jewelry and brand name watches available for consumer selection on the World Wide Web. As part of the joint venture, SOFTBANK, eVentures and @viso will provide Odimo.com with a full set of market access services, including identifying local competitors and potential partners, in order to accelerate Odimo.com's position worldwide. SOFTBANK, eVentures and @viso will act as incubators, providing capital, infrastructure, and local support services, including strategic marketing, technical facilities and personnel resources.
``We believe that together with SOFTBANK, @viso and eVentures we have a powerful combination that allows us to duplicate our U.S. business model worldwide and to be the first online merchant of certificated diamonds, fine jewelry and brand-name watches to market in Europe and Japan,'' said Alan Lipton, CEO of Odimo.com. ``The International online shopping market is growing rapidly, and we are excited to join into the race with partners having such formidable consumer reach.''
Published by Israel's Business Arena on March 30, 2000.