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EXHIBIT 99.1
FOR IMMEDIATE RELEASE
marchFIRST COMPLETES $150 MILLION INVESTMENT FROM
FRANCISCO PARTNERS
CHICAGO (DECEMBER 28, 2000) -- marchFIRST, Inc. (Nasdaq: MRCH), a leading global
professional services company, today announced the completion of the $150
million investment from Francisco Partners. The transaction closed and the
investment proceeds have been transferred to marchFIRST today.
"We are pleased to finalize this transaction in an expeditious manner. We
believe that this capital, coupled with our operating cash flow, will provide us
with the financial flexibility necessary to execute our year 2001 business plan
and our global client relationship model," said Robert Bernard, marchFIRST
Chairman and Chief Executive Officer. "We intend to focus on driving operational
excellence and leveraging our core capabilities to help our clients get closer
to their customers while maximizing their operational efficiencies."
Francisco Partners purchased 63,053 shares of marchFIRST's Series A, 8%
convertible preferred stock and 86,947 shares of marchFIRST's Series B, 12%
preferred stock for $1,000 per share. The Series A shares will be convertible at
any time into shares of marchFIRST common stock at a price of $2 per share. Upon
approval by marchFIRST stockholders, the Series B shares would convert into
Series A shares on a one-for-one basis. A detailed description of the terms of
these securities is contained in marchFIRST's Current Report on Form 8-K dated
December 13, 2000.
ABOUT marchFIRST
marchFIRST creates and delivers innovative, distinctive customer outreach and
enterprise improvement solutions for Global 3000 corporations and leading
emerging companies. marchFIRST helps its clients connect with their customers,
optimize their business infrastructure and maximize their existing assets to
drive better business results. The Company serves seven industry sectors:
manufacturing; financial services; high tech and telecommunications; consumer
products/retail; health care; media, entertainment and communications, and
transportation/travel and leisure. Headquartered in Chicago, marchFIRST has
offices in 16 countries worldwide. Its Web site is WWW.marchFIRST.COM.
ABOUT FRANCISCO PARTNERS
Francisco Partners, a $2.5 billion private equity firm focused on structured
investments in technology companies, was formed by David M. Stanton, Sanford R.
Robertson, Benjamin H. Ball, Dipanjan Deb and Neil M. Garfinkel. Francisco
Partners targets public companies, divisions of public companies and private
companies with transaction values ranging from $50 million to in excess of $2
billion. In total, the principals have made substantial investments in over 25
technology companies. Their investments include the purchase of Globespan, Inc.
and Paradyne from Lucent Technology; the purchase of Legerity from Advanced
Micro Devices; the purchase of XcelleNet from Sterling Commerce; the pending
purchase of American Microsystems, Inc. from Japan Energy Corporation; the
purchases of GT Com and Zilog, and the $1.8 billion purchase of ON
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Semiconductor from Motorola. In addition to its internal resource base,
Francisco Partners has an exclusive long-term relationship with Sequoia Capital,
one of the most prominent and successful venture capital firms in Silicon
Valley. Founded in 1972, Sequoia Capital has provided early stage capital to
over 350 technology companies including 3Com Corp., Apple Computer, Cisco
Systems, Inc., Oracle Corp., and Yahoo! Inc.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release includes forward-looking statements that reflect marchFIRST's
current expectations about its future results, performance, prospects and
opportunities. marchFIRST has tried to identify these forward-looking statements
by using words such as "believe" "intend," and similar expressions. These
forward-looking statements are subject to a number of risks, uncertainties and
other factors that could cause marchFIRST's actual results, performance,
prospects or opportunities in 2001 and beyond to differ materially from those
expressed in, or implied by, these forward-looking statements. These risks,
uncertainties and other factors include, but are not limited to, the development
of the marketplace for e-commerce solutions and other factors affecting market
demand, changes in business plans and financial models that may result from the
transaction discussed in this news release and any other financing or strategic
transactions entered into by marchFIRST, marchFIRST's ability to meet its future
cash needs, marchFIRST's ability to manage its growth and expansion into new
geographic areas and service lines, foreign currency exchange rate fluctuations
and other risks associated with international business, difficulties in
attracting and retaining highly skilled employees, marchFIRST's ability to
accurately estimate the cost, scope and duration of fixed-price client
engagements, marchFIRST's ability to collect amounts billed for client
engagements, risks related to marchFIRST's investments in equity securities,
risks related to possible acquisitions, competitive factors, integration and
other risks related to the merger with USWeb/CKS and possible consequences of
stockholder lawsuits against marchFIRST. For further information about these and
other risks, uncertainties and factors, please review the disclosure included
under the caption "Risk Factors" in marchFIRST's Quarterly Report on Form 10-Q
for the period ended September 30, 2000 and Annual Report on Form 10-K for the
year ended December 31, 1999, as filed with the Securities and Exchange
Commission. marchFIRST undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or changed circumstances or for any other reason.
# # #
NOTE TO EDITORS: The name marchFIRST is one word, with lowercase march and
uppercase FIRST.
MEDIA CONTACT: INDUSTRY CONTACT:
Kelly Miller Marce Buckman
marchFIRST, Inc. marchFIRST, Inc.
(312) 361-7018 (312) 361-7073
[email protected] [email protected]
FINANCIAL CONTACT:
John Peschier
marchFIRST, Inc.
(312) 913-6959
[email protected]
