000910 eMerge Acquires 2 More Livestock-Marketing Companies

Sebastian, FL - Merge Interactive, Inc., a business-to-business Value Chain Integrator serving the $40-billion U.S. beef-production industry, has acquired the cattle-marketing capabilities of two more organizations in Texas, the nation's largest cattle-producing state:

- McMahan Order Buying Company, a livestock brokerage based in Austin, which markets more than 200,000 head of cattle annually to large feedyards and stocker operations throughout Texas and the Midwest; and

- Robert Thigpen Livestock Company, Inc., of Chilton, which markets approximately 250,000 to 300,000 calves and yearlings per year throughout the Southwest.

The acquisitions expand eMerge's presence among hundreds of additional buyers throughout the cattle belt, according to chief executive officer Charles Abraham. "These moves enhance our ability to implement our business model," he said, "and to sell greater volumes of premium cattle through our growing network of CattleinfoNet Interactive Facilities." He added that this network is expected to include Robert Thigpen Livestock's 180-acre physical facility, pending the closing of its anticipated purchase.

"Along with last spring's acquisition of Jordan Cattle Auction in San Saba, these latest acquisitions greatly enhance our presence in the industry's most active region," Abraham said of the transactions, which will amount to over $8.6 million in the form of stock and cash, including the anticipated purchase of the Robert Thigpen Livestock facility. "It's especially significant for cattle producers. Whether they're large or small, producers now will be able to take advantage of a greatly expanded national marketplace through our Internet- enabled CattleinfoNet business network."

McMahan Order Buying Company is being integrated into eMerge's new Austin office, according to Rock McMahan, who will now apply his 16 years' experience in the beef industry as eMerge's Regional Manager of Cattle Sales.

"We're very excited about this acquisition," McMahan said. "The industry is changing, and eMerge is leading the way. By combining our industry knowledge with eMerge's outstanding new technologies, we will be able to help our customers market their cattle several different ways -- not just the old- fashioned way, but also via Internet auction, to make their cattle available to the whole industry."

Robert Thigpen Livestock will continue to operate out of Chilton, said Robby Thigpen. He will serve as its General Manager. This premier order- buying company has been providing ranchers and feedlots with cattle for 32 years, acquiring livestock from sales, farmers and ranches within a 250-mile radius of Chilton.

"Providing our customers with the proper quality livestock at the most affordable price has always been our primary goal," Thigpen said. "By joining eMerge, we will be able to do an even more effective job, while offering our customers greatly improved services and all the productivity advantages associated with leading-edge technologies."

The bottom line, according to McMahan, will be potentially greater efficiency for the entire industry. "We're putting together the best cattle- marketing organization in the country, which will be beneficial for both our producers and our feedlot customers. We're expanding the market exponentially for our producers, and offering feedlots the tremendous volumes of cattle they need."

Abraham agreed. "Through our unique combination of technology, information- management and virtual market integration, we are helping local ranchers capture and add previously unrealized value to their cattle," he said. "At the same time, we are helping them improve beef quality. We are pleased that these two industry leaders share our vision for enhancing the beef industry, and are proud to have them join the eMerge team."

Abraham noted that eMerge has renegotiated the terms of its previously announced acquisition of Billings Livestock Commission to include only the acquisition of Billings' Mountain Plains Video Contract Auction service, resulting in a reduced purchase price.

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