SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. _)*
Edgewater Technology, Inc.
(Name of Issuer)
Common Stock
(Title of Class of Securities)
280358102
(CUSIP Number)
Robert L. Chapman, Jr., Chapman Capital L.L.C. Continental Grand Plaza, 300
N. Continental Blvd. El Segundo, California 90245 Tel: (310) 563-6900 (Name,
Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
December 21, 2000
(Date of Event Which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following box
[ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7(b) for other
parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
(Continued on the following pages)
(Page 1 of 11)
<PAGE>
Page 11 of 11
1. NAME OF REPORTING PERSONS I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS
(ENTITIES ONLY) Chap-Cap Partners, L.P., a Delaware Limited Partnership
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a)[x] (b)[ ]
3. SEC USE ONLY
4. SOURCE OF FUNDS* WC
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7. SOLE VOTING POWER
0
8 SHARED VOTING POWER
1,479,500
9. SOLE DISPOSITIVE POWER
0
10. SHARED DISPOSITIVE POWER
1,479,500
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,479,500
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES* [ ]
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.2%
14. TYPE OF REPORTING PERSON*
PN
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Chapman Capital L.L.C., a Delaware Limited Liability Company
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)[x]
(b)[ ]
3. SEC USE ONLY
4. SOURCE OF FUNDS*
WC
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
6. CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7. SOLE VOTING POWER
0
8 SHARED VOTING POWER
1,479,500
9. SOLE DISPOSITIVE POWER
0
10. SHARED DISPOSITIVE POWER
1,479,500
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,479,500
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES* [ ]
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.2%
14. TYPE OF REPORTING PERSON*
OO
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
1. NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Robert L. Chapman, Jr.
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a)[x]
(b)[ ]
3. SEC USE ONLY
4. SOURCE OF FUNDS*
WC
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) [ ]
6. CITIZENSHIP OR PLACE OF ORGANIZATION
United States
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH
7. SOLE VOTING POWER
0
8 SHARED VOTING POWER
1,479,500
9. SOLE DISPOSITIVE POWER
0
10. SHARED DISPOSITIVE POWER
1,479,500
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,479,500
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES* [ ]
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.2%
14. TYPE OF REPORTING PERSON*
IN
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
ITEM 1. Security and Issuer.
This statement relates to the common stock (the "Common Stock") of
Edgewater Technology, Inc. (the "Issuer"). The Issuer's principal executive
office is located at 234 East Millsap Road, Fayetteville, AR 72703.
ITEM 2. Identity and Background.
(a)-(c) This statement is being filed by Chap-Cap Partners, L.P., a
Delaware limited partnership ("Chap-Cap"), Chapman Capital L.L.C., a Delaware
limited liability company ("Chapman Capital"), and Robert L. Chapman, Jr.
(collectively, the "Reporting Persons"). Chap-Cap's present principal business
is investing in marketable securities. Chapman Capital's present principal
business is serving as the General Partner of Chap-Cap. Robert L. Chapman, Jr.'s
present principal occupation is serving as Managing Member of Chapman Capital.
Chapman Capital and Robert L. Chapman, Jr. each expressly disclaims equitable
ownership of and pecuniary interest in any Common Stock.
Chap-Cap, Chapman Capital and Robert Chapman, Jr.'s business address is
Continental Grand Plaza, 300 North Continental Blvd., El Segundo, California
90245.
(d) and (e) During the last five years, none of the persons or entities
above has been (i) convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors); or (ii) a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result of
such proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to, federal
or state securities laws or finding any violation with respect to such laws.
(f) Robert Chapman, Jr. is a citizen of the United States.
ITEM 3. Source and Amount of Funds or Other Consideration.
The source and amount of funds used by the Reporting Persons in making their
purchases of the shares of Common Stock beneficially owned by them are set forth
below:
SOURCE OF FUNDS AMOUNT OF FUNDS
Working Capital $8,904,345
ITEM 4. Purpose of Transaction.
The Reporting Persons acquired the Common Stock beneficially owned by
them in the ordinary course of their trade or business of purchasing, selling,
trading and investing in securities.
The Reporting Persons intend to review their investment in the Issuer
on a continuing basis and, depending on various factors, including the Issuer's
business, affairs and financial position, other developments concerning the
Issuer, the price level of the Common Stock, conditions in the securities
markets and general economic and industry conditions, as well as other
investment opportunities available to them, may in the future take such actions
with respect to their investment in the Issuer as they deem appropriate in light
of the circumstances existing from time to time. Such actions may include,
without limitation, the purchase of additional shares of Common Stock in the
open market and in block trades, in privately negotiated transactions or
otherwise, the sale at any time of all or a portion of the Common Stock now
owned or hereafter acquired by them to one or more purchasers, or the
distribution in kind at any time of all or a portion of the Common Stock now
owned or hereafter acquired by them.
Robert L. Chapman Jr. has spoken with management of the Issuer
regarding the possibility of, or seeking to influence the management of the
Issuer with respect to, board representation, business strategies, legal
strategies, tax strategies, mergers, business combinations, recapitalizations,
sales of assets, negotiated or open-market stock repurchases or other
extraordinary corporate transactions.
Specifically, Mr. Chapman has articulated repeatedly to Mr. Clete T.
Brewer, Chairman and Chief Executive Officer of the Issuer, several other senior
officers of the Issuer, and the entire Board of Directors of the Issuer Chapman
Capital's belief that all but $5-10 million of the Issuer's cash and equivalents
should be distributed to the Issuer's shareholders as soon as practical. Mr.
Chapman has communicated the Reporting Persons' disenchantment with the Issuer's
highly-dilutive employee and officer stock option programs and announced
intention to utilize only $130 million of the Issuer's currently-held cash and
equivalents in the Issuer's $8 per share self tender offer, particularly since
it has been reported that the Issuer will be receiving an additional $31 million
from the sale of its Clinforce division plus an estimated $15 million through a
tax refund. Chapman Capital has communicated that it does not support the
retention by the Issuer of an estimated $55 million in cash and equivalents
($145 million in existing cash/equivalents less $130 million self-tender plus
$31 million Clinforce sale proceeds plus estimated $15 million tax refund less
$6 million transaction-related expenses) for working capital use by the residual
e-solutions division which a) is estimated to have approximately $30 million in
revenues in 2000, b) has purported to be cash flow positive, and thus
self-funding, and c) has purported not to be interested in non-organic growth
through cash-funded acquisitions and significant new office openings. In
addition, Mr. Chapman has communicated to Mr. Brewer that should the Reporting
Persons, at any time and under any circumstances, be asked to vote for the
approval of any sale of the Issuer's assets (e.g., Clinforce), it is the
Reporting Persons' current intention to vote "NO" (i.e., against such asset
sale) unless the Issuer is legally bound to distribute at least 95% of the
proceeds from such asset sale immediately upon the sale's consummation.
The Reporting Persons may in the future consider a variety of different
alternatives to achieving their goal of maximizing shareholder value, including
negotiated transactions, tender offers, proxy contests, consent solicitations,
communications with other shareholders or other actions. However, it should not
be assumed that the Reporting Persons will take any of the foregoing actions.
The Reporting Persons reserve the right to participate, alone or with others, in
plans, proposals or transactions of a similar or different nature with respect
to the Issuer.
Chapman Capital L.L.C. has initiated a "victims fund" for the families
of the Issuer's employees killed during the tragedy that fell upon the Issuer's
e-solutions subsidiary on December 26, 2000. In particular, this fund ("Friends
of Edgewater Charitable Fund") has been accumulating donations to be given to
the Issuer to help satisfy the needs of families placed into both financial and
emotional distress due to the loss of a loved one in the horrific incident.
Except as set forth above, as of the date of this filing none of the
Reporting Persons has any plans or proposals, which relate to or would result in
any of the actions set forth in parts (a) through (j) of Item 4. Such persons
may at any time reconsider and change their plans or proposals relating to the
foregoing.
ITEM 5. Interest in Securities of the Issuer.
(a) Together, the Reporting Persons beneficially own a total of
1,479,500 shares of Common Stock constituting 5.2% of all of the outstanding
shares of Common Stock.
(b) The Reporting Persons have the shared power to vote or direct the
vote of, and to dispose or direct the disposition of, the shares of Common Stock
beneficially owned by them.
(c) The following transactions were effected by the Reporting Persons
during the past sixty (60) days:
Approximate Price
per Share
Amount of (exclusive of
Date Security Shares Bought commissions)
---- -------- ------------- ------------
10/27/00 Common 10,000 $4.63
10/31/00 Common 15,000 $4.78
11/01/00 Common 31,500 $4.72
11/09/00 Common 1,500 $4.94
11/10/00 Common 48,500 $5.03
12/21/00 Common 1,000,000 $6.50
<PAGE>
Approximate Price
per Share
Amount of (exclusive of
Date Security Shares Sold commissions)
---- -------- ---------------- ------------
11/03/00 Common 36,000 $5.77
11/06/00 Common 10,000 $5.84
11/10/00 Common 5,000 $4.98
11/10/00 Common 5,000 $4.98
11/13/00 Common 500 $4.87
12/21/00 Common 1,000,000 $6.49
12/21/00 Common 30,000 $6.62
12/21/00 Common 5,000 $6.75
12/22/00 Common 5,000 $6.62
The above transactions were effected by the Reporting Persons on the
NASDAQ National Market.
Other than the transactions described above and those described in Item
6 below, no other transactions with respect to the Common Stock were effected by
the Reporting Persons during the past sixty (60) days.
(d) No person other than the Reporting Persons has the right to receive
or the power to direct the receipt of dividends from, or the proceeds from the
sale of, the shares of Common Stock beneficially owned by the Reporting Persons.
(e) Not applicable.
TEM 6. Contracts, Arrangements, Understandings or Relationships With
Respect to Securities of the Issuer.
The following transactions were effected by the Reporting Persons on
the Pacific Exchange:
Approximate Price
per Contract
Amount of (inclusive of
Date Security Contracts Bought commissions)
---- -------- ---------------- ------------
12/4/00 Apr.7.5 Put 500 $2.70
Approximate Price
per Contract
Amount of (inclusive of
Date Security Contracts Sold commissions)
---- -------- -------------- ------------
12/4/00 Jan.7.5 Put 500 $2.18
<PAGE>
The following transactions were effected by the Reporting Persons on
the Philadelphia Stock Exchange:
Approximate Price
per Contract
Amount of (inclusive of
Date Security Contracts Bought commissions)
---- -------- ---------------- ------------
12/4/00 Apr. 5 Put 600 $1.08
Approximate Price
per Contract
Amount of (inclusive of
Date Security Contracts Sold commissions)
---- -------- -------------- ------------
12/4/00 Jan. 5 Put 600 $0.49
ITEM 7. Material to be Filed as Exhibits.
Exhibit A - Joint Filing Agreement
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of its knowledge and belief,
the undersigned each certifies that the information with respect to it set forth
in this statement is true, complete and correct.
Dated: December 28, 2000
CHAP-CAP PARTNERS, L.P.
By: Chapman Capital L.L.C.,
as General Partner
By: /s/ Robert L. Chapman, Jr.
--------------------------------
Robert L. Chapman, Jr.
Managing Member
CHAPMAN CAPITAL L.L.C.
By: /s/ Robert L. Chapman, Jr.
--------------------------------
Robert L. Chapman, Jr.
Managing Member
/s/ Robert L. Chapman, Jr.
------------------------------------
Robert L. Chapman, Jr.
<PAGE>
EXHIBIT A
JOINT FILING AGREEMENT
The undersigned hereby agree that the statement on Schedule 13D with
respect to the Common Stock of Edgewater Technology, Inc. dated December 28,
2000, is, and any further amendments thereto signed by each of the undersigned
shall be, filed on behalf of each of the undersigned pursuant to and in
accordance with the provisions of Rule 13d-1(f) under the Securities Exchange
Act of 1934, as amended.
Dated: December 28, 2000
CHAP-CAP PARTNERS, L.P.
By: Chapman Capital L.L.C.,
as General Partner
By: /s/ Robert L. Chapman, Jr.
--------------------------------
Robert L. Chapman, Jr.
Managing Member
CHAPMAN CAPITAL L.L.C.
By: /s/ Robert L. Chapman, Jr.
--------------------------------
Robert L. Chapman, Jr.
Managing Member
/s/ Robert L. Chapman, Jr.
Robert L. Chapman
