Infe.com to spin off IT*CareerNET

11/4/99 4:13:00 AM

By Ray Bolger, dbusiness.com

McLEAN, Va., Nov. 4 (dbusiness.com) - INFe.com, a human resources outsourcing firm, will spin off its relatively new online employee recruitment service, IT*CareerNET, through a planned $25 million initial public offering, the company said.

Thomas Richfield, INFe.com's president and chief executive officer, told dbusiness.com that the recruitment site has generated approximately $50,000 in monthly revenues since it was launched 90 days ago.

IT*CareerNET charges employers a flat rate of $1,000 to post job listings that are "pushed" to qualified candidates via e-mail, and another $6,000 if the job is filled, Richfield said. The model differs from the typical recruitment service that takes a commission equal to two-months salary for jobs filled.

Customers that have used the IT*CareerNET service so far include IBM, Cable & Wireless Corp., Digital Focus Inc., and SpaceWorks Inc., Richfield said.

INFe.com (OTCBB: INFE) offers growing e-commerce companies an array of services including benefits plans, payroll services, and outsourcing of human resources. The company is three years old, and plans to be a fully reporting company with the Securities and Exchange Commission within the next 30 days, according to Richfield.

The company has a signed letter of intent to acquire a West Virginia-based staff leasing firm with $21 million in annual revenues, for a price of $2.8 million, Richfield said, adding that the deal is expected to close by end of the month.

INFe.com's overall strategy calls for the acquisition of 15 IT staffing firms across the United States that do approximately $5 million a year each in revenues, he said.

Raymond Bolger covers the DC Metro region for dbusiness.com. E-mail himKnokke-Heist luxury hotels with story ideas or comments. November 24, 1999 12:25pm