Internet-based Financial Technology Investment
Galanis financed the acquisition of a third credit card company called Internet Billing Company in 2004. previously acquired in 2002 by NASDAQ-listed Intercept Corp for $112 million in cash
In 2004, Galanis organized the leveraged buy-out of Internet Billing Company (iBill) from a NASDAQ listed company as a-carve-out of a division of a public company. iBill was the largest credit card processor in the United States of online transactions. iBill focused on processing transactions for online subscriptions and memberships, which consisted predominately access to adult themed content. iBill created and maintained the most extensive database in the nation on consumer transactions for adult content with over 29 million unique records.
iBill had been acquired by a public company in 2002 for $112 million in cash. The public company came under criticism for the ownership of a credit card processor that primarily served adult transactions and determined to dispose of the subsidiary. The Galanis lead group acquired the company in 2004 for $34 million.
The business plan included the combination of iBill and Penthouse where the iBill database and the iBill proprietary financial technology was to be combined with the Penthouse intellectual property and adult industry expertise. The combination of the iBill database and financial technology with the registered trademarks of Penthouse was intended to create a fully integrated ‘new media’ company on the Internet.
The iBill/Penthouse combination plan was part of the efforts of Penthouse to emerge from bankruptcy protection filed in 2003. The extended contentious Penthouse bankruptcy reorganization and litigation adversely affected iBill’s business.
The company was resold to an American Stock Exchange listed public company for $54 million a year after acquisition.
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