Penthouse Acquires Internet Billing Company iBill

The transaction, valued at approximately $23.5 million, included a $20.0 million assumption by Penthouse of certain obligations relating to iBill. Penthouses majority shareholder, and an affiliate of a major U.S. insurance company have provided financial backing in connection with the transaction. iBill is a leading e-commerce company focused on enabling businesses to market and sell their products over the Internet, including online subscriptions. iBill also manages all back-office functions including reporting, tracking, customer service and sales transactions. Its services are powered by technology that integrates online payment processing, fraud control, affiliate management and financial reporting and tracking. Over the last five years, iBill has successfully processed over $2.0 billion in online subscriptions representing tens of millions of consumer transactions. iBill believes that thousands of iBill clients have demonstrated that the Internet is an efficient sales distribution channel for entertainment content. Founded in 1997, iBill has been cash flow positive for the past five years, and has positioned itself as one of the more profitable e-commerce business models born from the dot-com era.