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Divine buying marchFIRST
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April 2, 2001: 12:47 p.m. ET
Ailing Internet consultant to get over $120M for some assets, cuts 1,700 jobs
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NEW YORK (CNNfn) - Ailing Internet consultant marchFIRST Inc. agreed to sell some of its assets to Divine Inc. for more than $120 million and announced plans to cut its workforce by about 30 percent.
In the first of two transactions, Chicago-based marchFIRST (MRCH: Research, Estimates) agreed to sell its Central Region business unit for $6.25 million, a $27.75 million note payable over five years, and another $39 million payable over five years that hinges on the unit's performance.
MarchFIRST also auctioned off its SAP practice, its VAR business and other assets, which may include interest in BlueVector LLC, subject to regulatory approval. MarchFIRST will receive $6.25 million, a $29.75 million five-year note, and an additional $16 million payable over five years, also contingent on the unit's future performance. This transaction is expected to close promptly, the company said.
 The operations sold include the SAP practice Denver headquarters and 19 other offices, which employ 2,100.
Chicago-based Divine (DVIN: Research, Estimates) is a former Internet incubator, once known as Divine interVentures and headed by CEO Andrew Flipowski, which now is a software firm.
MarchFIRST also is trying to sell its other business units and is cutting 1,700 employees, or 30 percent of the work force, in a move to increase the units' value, and is closing its Australian operations.
Shares of Divine gained 16 cents to $1.78 Monday. Trading in marchFIRST has been halted since last Wednesday. 
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