Scient Files Chapter 11, Strikes Acquisition Deal With SBI

Scient SBI and Co.

SBI and Scient have hammered out a deal under which SBI will purchase certain Scient assets, including staff in the United Kingdom and the United States; offices in Dallas, New York and Chicago; and seven clients, whose identities SBI executives would not disclose.

SBI, based here, intends to give Scient up to $4.9 million to keep its operations running pending the completion of SBI's purchase. The companies will present details of the proposed acquisition to the U.S. Bankruptcy Court and expect it to be approved in the coming months.

Coleman Barney, SBI's co-founder and senior vice president, said SBI will have about 700 employees upon completion of the Scient deal.

"Our major vertical [industries are manufacturing, telecommunications, retail and transportation," Barney said. The acquisition of Scient could add a fifth vertical focus--financial services--to SBI's roster, Barney said.

Scient Chairman Bob Howe and about 200 other Scient employees are expected to accept jobs at SBI, Barney said. Howe's role, however, is as yet undecided.

This is the latest in a series of solution provider acquisitions by SBI, which also purchased assets of WebFlow in May, Emerald Solutions in October 2001 and marchFirst in June 2001.

With the WebFlow acquisition, SBI gave a boost to its SAP practice.

In the case of Emerald, an e-business solution provider founded in 1997, SBI got clients including AT&T and Verizon, as well as more staff and office space in Dallas and Warren, N.J.

SBI acquired people, offices and accounts from marchFirst's New York, San Francisco and Portland, Ore., offices, gaining clients including American Airlines and Mattel along the way.

"You have seen us do three deals with distressed companies [over the past year, and that is only a fraction of the deals that have been presented," Barney said.

Following the marchFirst buyout, "we never lost business and we never lost money bringing that deal in," Barney said. In the same vein, business attained in the Emerald purchase "has continued to be profitable."