Vsource Expands Board, Elects 2 New Directors

Vsource Inc. in Ventura has expanded its board of directors from five to seven members and elected two new directors.

The new directors are I. Steven Edelson and Nathaniel C.A. Kramer, both managing directors of Mercantile Capital Group. Mercantile first invested in Vsource’s $7 million financing last February and led the company’s $10.7 million financing that closed in September.

The board also has agreed to intensify the search for a new chief executive, with the goal of having a new CEO in place in three or four months. The company has been conducting an internal search since mid-2000 and has now hired Heidrick & Struggles International Inc. to assist in the search.

The three-director search committee includes current Chief Executive Robert C. McShirley, who is expected to continue to play an active role in the company after a new CEO is hired.

Vsource manufactures Virtual Source Network, which allows companies to create Internet-based procurement systems.