New York - CPA2Biz, the Internet portal conceived by the American Institute of CPAs, has a new president and technology platform, but hasn't yet shed the nagging image problems within the industry.

The online distributor of products and services to CPAs and their clients recently acquired Rivio Inc., a Web-hosting platform and provider of Internet-based services and software applications to small businesses. Rivio has become a wholly owned subsidiary of CPA2Biz, and its founder, Navin Chaddha, is now president of the portal.

Chaddha assumes many of the responsibilities formerly held by Brett Prager, who surrenders the president's title, but remains chief executive officer.

Santa Clara, Calif.-based Rivio, with a reported $30 million in annual revenue, will make its proprietary business software applications available for sale on CPA2Biz and it will serve as the portal's application service provider.

It replaces Jam-Cracker Inc., whose Web-hosting may have come under fire because of reports of service breakdowns and technological glitches at CPA2Biz in recent months.

While CPA2Biz officials hail the acquisition as a major step forward, critics opine that the Rivio deal is a further indication of business troubles at the portal.

Rivio's key product, "Office Manager," is a Web-based suite of workflow and human resource management tools, including payroll processing, purchasing and procurement services and expense reporting that can be integrated with end-users' financial management software of choice.

In addition, Rivio also has delivery relationships with more than 150 third-party vendors of software and business services, which could theoretically be added to the CPA2Biz menu.

Prager said the CPA2Biz management considered five different companies before deciding to acquire Rivio.

Financial terms were not released, but it appears that CPA2Biz bought out the stakes held by some or all of Rivio's financial backers, which include venture capitalists Opportunity Capital Partners, Mobius Venture Capital and the venture unit of management consultancy Accenture. As part of the deal, Gary Rieschel, executive managing director of Mobius Venture, joined CPA2Biz's board of directors.

Prager said that adding Rivio's technology offerings "closes the loop" on a CPA2Biz operations plan that also included delivering the AICPA products and services, which the portal has been doing since its inception, and, offering financial services, which are now available via Capital Professional Advisors - a turnkey financial services program CPA2Biz acquired last year.

"With Navin Chaddha, we are getting someone who has operated some substantial  business, who can really help bring some organization and discipline to this organization," said Prager.

Chaddha, 30, has an impressive track record in Internet technology.

Prior to Rivio, which was formerly called Biztro, he co-founded VxTreme, an Internet media-streaming software company which he sold to Microsoft Corp. for $75 million in 1997. Microsoft appointed Chaddha as its chief technology officer, a post he held for about two and a half years.

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