IBM Acquires Mainspring
IBM has acquired digital consulting company Mainspring. IBM will pay four dollars a share in cash for all outstanding Mainspring common stock in a merger transaction estimated in excess of $80 million.
John M. Connolly, Mainspring Chairman, President and Chief Executive Officer, will become General Manager and Global Head of the E-Business Strategy and Change Practice within Business Innovation Services, the consulting arm of IBM Global Services. Connolly will report to Tom Hawk, General Manager for Business Innovation Services, Americas, IBM Global Services.
Closing of the transaction is anticipated by mid-June 2001, subject to government reviews and shareholder approval. Shareholders holding more than 50 percent of the shares outstanding have agreed to vote in favor of the transaction.
Founded in the summer of 1996 and public since July 2000, Mainspring has offices in Cambridge, New York and Chicago. It provides clients with core digital business strategy consulting services, as well as Mainspring Direct, a differentiated intellectual capital service delivering fact-driven strategic studies on e-business issues across a variety of industries. Mainspring's additional offering is its Executive Council, a forum comprised exclusively of senior executives, which meets on a quarterly basis to exchange best practices around digital business solutions.