AT&T to Acquire USi

AT&T Inc. on Tuesday announced that its subsidiary, AT&T Corp., has agreed to acquire privately held USinternetworking Inc. (USi ), an applications service provider (ASP), for approximately $300 million in cash and assumed debt.

The transaction, which is expected to close in the fourth quarter, is designed to enhance AT&T’s enterprise service offerings.

It strategically aligns USi’s software and eBusiness management services and consulting expertise with AT&T’s portfolio of enterprise hosting and managed services.

USi specializes in managed enterprise software solutions and on-demand services. USi provides software management and outsourcing services for widely used popular business. The company also develops, hosts and manages customized eCommerce solutions.

Following the acquisition, the company will operate as a wholly owned subsidiary and business unit within AT&T’s enterprise services organization, which is led by Group President Forrest Miller. AT&T expects to retain USi’s team and its domestic and international operations.

“The USi team is excited to be joining forces with AT&T,” said Andrew A. Stern, USi’s chairman and CEO. “Over the past eight years, USi has developed an unmatched ability to deliver enterprise-scale applications as fully integrated, on-demand services. Combining our capabilities with AT&T’s global footprint creates an unparalleled opportunity for growth and the basis for continued market leadership for years to come.”

Stern will join AT&T as CEO of USi upon the closing of the transaction.

AT&T Inc. www.att.com
USinternetworking ( USi ) www.usi.com

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