AT&T to Buy USinternetworking for $300MBy Baselinemag | Posted 2006-09-12 Print
AT&T on Tuesday announced plans to acquire privately held application service provider USinternetworking for about $300 million in cash and assumed debt. The deal is expected to close in the fourth quarter.
AT&T, padding its software-as-a-service portfolio, on Tuesday announced plans to acquire privately held application service provider USinternetworking for about $300 million in cash and assumed debt.
USi, founded in 1998, provides software management services for various business applications, including those from Ariba, IBM, Microsoft and Oracle. The Annapolis, Md.-based company claims to have 150 customers in 30 countries; it says 60% of its revenue comes from companies with annual sales of more than $1 billion.
USi filed for Chapter 11 bankruptcy protection in 2002. That year it received an $81 million investment from Bain Capital and merged with Interpath, another application service provider in which Bain Capital owned a controlling interest.
In seeking to acquire USi, AT&T is looking to expand its data-centric offerings after the company's long-distance business has grown soft in recent years. The long-distance phone and network services company, incorporated in 1885, was acquired last year by SBC Communications in a $16 billion deal. The combined company adopted the more recognizable AT&T name, then this March announced plans to buy regional phone company BellSouth for $67 billion.
Following the acquisition, USi will operate as a wholly owned subsidiary within AT&T's existing enterprise services organization. Andy Stern, USi's chairman and CEO, will join AT&T as CEO of USi after the deal closes, the companies said. AT&T also expects to retain USi's other executives and its domestic and international operations.
"The addition of USi's technology and expertise in applications management to AT&T's global reach, networking expertise and extensive hosting capabilities will broaden the range of solutions for our customers," said Forrest Miller, group president of AT&T's enterprise services group, in a statement.
IT Solutions Builder TOP IT RESOURCES TO MOVE YOUR BUSINESS FORWARD
Which topic are you interested in?
What is your company size?
What is your job title?
What is your job function?
Searching our resource database to find your matches...