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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 8, 1999
WAM!NET INC.
(Exact name of registrant as specified in charter)
Minnesota 333-53841 41-1795247
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
655 Lone Oak Drive 55121
Eagan, Minnesota (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (651) 256-5100
Not Applicable
(Former name or former address, if changed from last report)
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Item 5. Other Events.
WAM!NET today announced the completion of a $38 million financing with
Chase Capital Partners. The financing was completed in the form of a
sale-leaseback of its corporate headquarters located in Eagan, Minnesota.
WAM!NET also announced that MCI WorldCom will become a passive investor and
maintain a strategic relationship with the Company. Consistent with this
objective, MCI WorldCom, a significant investor in the Company, has agreed to
relinquish its right to elect directors to WAM!NET's Board of Directors and the
MCI WorldCom representatives on the Board have resigned from their positions.
Ed Driscoll, Chairman and CEO of WAM!NET, welcomed MCI WorldCom's
willingness to become a more passive partner, noting that in early 1999 MCI
WorldCom invested an additional $25 million in the Company and agreed to less
than a majority representation on the Board in connection with a $75 million
equity investment in WAM!NET by Silicon Graphics Inc. He stated that the
transition is important to the Company because it highlights and demonstrates
WAM!NET's ability to continue its growth and success, independent of MCI
WorldCom's direct involvement. While there may have been different views
regarding the implementation of WAM!NET's strategic plan, the Company believes
that MCI WorldCom's involvement has been quite beneficial over the years and
that they will continue to be supportive of WAM!NET's vision.
Gary Hokkanen, President of WAM!NET, emphasized that as a result of the
transition, WAM!NET is now better positioned to attract other strategic business
and financial partners.
WAM!NET Inc. is a leading global provider of business-to-business digital
data management services and workflow solutions to the publishing, printing,
advertising and entertainment industries. By combining its managed global
network and storage infrastructure with Industry Smart software applications,
the Company provides its geographically diverse customers with a common
electronic workflow platform for the creation, transmission and storage of
digital media on a transactional basis. WAM!NET's workflow solutions enable its
customers to seamlessly integrate their digital production processes and
accelerate the adoption of digital workflow collaboration. This enables
businesses to achieve measurable operating efficiencies, cost-savings and
productivity gains, contributing to increased profitability.
WAM!NET owns and operates a global, private, Internet Protocol based
network. Its high-speed asynchronous transfer mode, or ATM, backbone links three
strategically located network operating centers in Eagan, Minnesota, Las Vegas,
Nevada and Brussels, Belgium. The Company's network extends globally through 30
distribution hubs located in 19 major cities in the U.S. and Canada, 10 cities
in Europe and one city in Japan.
Approximately 3,000 customers currently utilize WAM!NET's services globally
including Time Inc., Young & Rubicam Inc., R.R. Donnelley & Sons Company, Sears,
Roebuck & Co., Wal-Mart Stores, Inc., Ford Motor Company and Walt Disney
Pictures and Television. The Company's present strategic partners include MCI
WorldCom, Silicon Graphics, Sumitomo Corporation and Minnesota Mining and
Manufacturing Company (3M).
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WAM!NET INC.
By: /s/ Terri F. Zimmerman
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Name: Terri F. Zimmerman
Title: Chief Financial Officer
October 8, 1999
