Brazilian H-1B Fools the Fools
Brazilian H-1B Fools the Fools
Date: Wednesday, May 21, 2003 11:00 AM
JOB DESTRUCTION NEWSLETTER
www.ZaZona.com
Most reporters, when doing a story on visa fraud, never think of asking
what kind of visa was used to get entry into the U.S. Fortunately
Michelle Malkin isn't just another reporter. Malkin treated us to the
fact that Marcello Benati not only has an expired H-1B visa but that he
probably knows how to use Adobe Photoshop to forge some papers. He must
be one of those highly skilled H-1Bs.
I decided to do a little more investigating on Benati and found that
the internet has lots of stuff on him. He worked for a Chicago area
bodyshop called Marchfirst.
Here is a screen shot of his former employer: MarchFirst:
http://disobey.com/ghostsites/show_exhibit/marchfirst
Marchfirst is now a ghost company so thank goodness this website
preserves their home page. According to some kind of weblog, which I
include below, Marchfirst "was an Internet Failure, a complete Internet
Disaster."
For a quick rundown of this bankrupt Chicago company go to:
http://www.eprairie.com/companyprofiles/viewcompanyprofile.asp?code=marchfirst
Benati enjoyed writing so much that he put the first chapter online.
The following warning is printed on the page, but Benati will have to
get out of jail to do anything about this newsletter:
This is copyrighted material and is the property
of Marcello Benati.
Do not copy and send or post on any site.
Here is a a complimentary book review for Benati:
If the first chapter is any indication of the rest of the book, don't
expect to see it on the bestseller's list. Don't expect to see it
published either. The conversation between Caesar and Brutus is an
attention grabber but the plodding pace of the rest chapter is mired
even further with dull emails between corporate flim flam artists.
Literary reviewer for ZaZona.com
http://www.townhall.com/columnists/michellemalkin/mm20030521.shtml
townhall.com
Imposters in the air
Michelle Malkin (back to web version)
May 21, 2003
What good is the $5 billion Transportation Security Administration if
it can't keep armed impostors from breezily bypassing security
checkpoints and boarding planes?
According to U.S. State Department and federal court documents, a man
from Brazil was able to con his way onto at least one domestic flight
by posing as a U.S. State Department diplomatic security dignitary
protection agent.
Like smooth-talking Frank Abagnale Jr. in the recent hit movie "Catch
Me If You Can," Marcello Benati used phony credentials to sidestep
airline security checks. The Brazilian national's shiny badge was
emblazoned with the phrase "The United States of America: DSS --
Special Agent." His fake credentials bore the official seal of the U.S.
and the job description "Advanced (sic) Team/Profiler Lead."
In February, Benati identified himself to a United Airlines employee at
Miami International Airport as a federal agent in a hurry to escort an
"important person." He was accompanied by an unknown male who flashed
similar bogus law enforcement credentials. According to an
investigative memo written by State Department Diplomatic Security
Service special agent Richard Higbie, the United Airlines employee
stated that both Benati and his companion were armed.
The United Airlines employee escorted Benati and his traveling partner
to the head of the line at the ticketing desk, ahead of other
customers. There, the two men received new tickets for an American
Airlines flight, which they boarded without getting caught.
Benati was arrested in April, but only after he accidentally left his
wallet -- containing the fake badge and law enforcement credentials --
at a clothing store in Dallas. "He's been using this identity to fly
around the country, avoiding the checkpoints going in and out of
airports," Dallas County Sheriff Jim Bowles said after the arrest.
Federal prosecutors in Miami have charged Benati with falsely
impersonating a federal officer and possessing false federal
identification. (Immigration records also show he was an illegal visa
overstayer who violated the terms of the fraud-ridden H-1 B program for
foreign high-tech workers.) Benati's companion remains unidentified and
on the loose.
Transportation Security Administration spokesman Ed Martelle defended
his hapless agency's performance, telling the Fort Worth (Texas)
Star-Telegram that, "To the best of our knowledge, (Benati) did not get
through any of our checkpoints." That may be technically,
bureaucratically, spokesmanly true. But it misses the point. Benati
didn't have to go through any TSA checkpoints because he was apparently
able to get around them.
Why bother paying 50,000 TSA screeners at more than 420 U.S. airports
to stand around, confiscating scissors and baby nail clippers in the
name of homeland security, when any computer geek with proficiency in
Adobe Photoshop can sweet-talk his way on board a plane with help from
a gullible airline employee?
How many toddlers and grandmas were stopped for random checks at the
boarding gate while Benati and his pal whizzed right by?
Where was the Transportation Security Intelligence Service (there's an
oxymoron) to stop this faker and his partner from perpetrating brazen
identity fraud?
And if one con artist such as Benati can game the system so easily, how
can TSA claim to be defending us effectively against any more of Osama
bin Laden's airborne warriors?
Customs records show that Benati had flown into Miami at least one
other time last fall from Brazil, which highlights troubling,
terrorism-related loopholes. Terrorist operatives facing security
crackdowns in the Middle East may undoubtedly find South America an
easier point of departure to the United States. Miami International
Airport is a major crossroads for flights from Latin America, where
terrorist groups such as Hezbollah and Hamas have established lucrative
bases -- and where al Qaeda is suspected of gaining a foothold in the
tri-border intersection of Argentina, Brazil and Paraguay.
(The problem of impostors in the air is further compounded by the TSA's
disastrous acceptance of the matricula consular card, a Mexican
government-issued photo ID that has been used by dozens of non-Mexican
illegal aliens to board domestic flights, according to my law
enforcement sources.)
Last fall, Miami International Airport's TSA workers made headlines
when a snoozing security employee allowed two passengers to slip by
metal detectors and luggage X-ray screening. It's difficult to
determine when the TSA stooges undermine homeland security more: when
they're asleep on the job -- or when they're awake.
)2003 Creators Syndicate, Inc.
http://news.com.com/2100-1017-253920.html
MarchFirst enters the terrible twos
By Melanie Austria Farmer
Staff Writer, CNET News.com
March 12, 2001, 10:45 AM PT
http://news.com.com/2100-1017-253920.html
For Bill Matassoni, MarchFirst lost its appeal once the troubled Web
consultancy began to lose its focus, especially on its own people.
"I missed the focus on quality, the focus on people," said the former
MarchFirst executive. "Classic strategy consulting is still an
apprenticeship profession. There was no time for apprenticeship in an
e-strategy firm. It was always race, race, race."
Once a consulting firm stops investing in its own people, then quality
becomes a problem, he added. "Consultants sell people, skills,
knowledge and experience," said Matassoni, who spent 20 some years in
the industry and is now a vice president with Boston Consulting Group.
"E-strategists had the knowledge but lacked the experience and the
people."
As it marks the end of a difficult first year, MarchFirst now finds
itself lacking several key people: The company on Monday announced the
resignations of Chief Executive Robert Bernard, Chief Operating Officer
Thomas Metz and Executive Vice President Joseph Bong.
The executive departures are the latest bump in the road for the
sputtering company, which has already hit a number of potholes
including bleak financial results, several rounds of layoffs, a sagging
stock price and cost-cutting initiatives.
Just last month, MarchFirst posted a wider-than-expected loss in its
fourth quarter and lowered its sales estimates for the first quarter of
fiscal 2001. Since November 2000, it has laid off roughly 2,100
employees as it has battled to reach profitability.
But its efforts have consistently failed to gain traction.
"MarchFirst is off the respirator now and is basically on the table for
organ donations," said Tom Rodenhauser, an industry analyst who heads
Consulting Information Services. "Who, in their right mind, would join
this firm (now) to lead it" out of its current troubles, he asked.
Rodenhauser, who called the executive departures "the best of a bad
situation," said that the move is indicative of the tumult the company
has recently been in and that he believes a new leader will have a
tough job ahead.
"On a difficulty scale, it's a 10," he said. "It's one thing to turn
around a business to take it back to where it was, but when the
landscape has changed this drastically, there is no going back."
Struggle born of merger
MarchFirst's troubles date back a year to its founding in the merger
between traditional systems integrator Whittman-Hart and Internet
consultancy USWeb/CKS.
Though the two companies dove into the integration process, making an
impression on Wall Street and attempting to convince analysts that
MarchFirst could succeed, hurdles began to rise.
"Its very easy to underestimate how difficult it is to integrate the
different cultures," said Matassoni, who got folded into USWeb in
mid-1999 after it bought strategy-consulting firm Mitchell Madison
Group. "The rush to announce the success of the integration was both
naive and arrogant."
Industry pundits, who shrugged off the union when it was first
announced in December 1999, are still shaking their heads.
"Whittman-Hart made a poor choice," said Rodenhauser. "It wasnt a
merger of equals."
In a recent statement, the company said it has sharpened its focus to
target three strategic goals: improved profitability, positive cash
flow and disciplined growth. It also has said it plans to save
approximately $100 million annually, beginning this year as a result of
some of its recent cost-cutting measures, including the job cuts.
Whittman-Hart's move to merge with the former high-flying Net
consultant was indicative of the times more than a year ago when
larger, slow-moving traditional consulting firms wanted to quickly
shift their focus to the Web. But now the once highly reputable
Whittman-Hart, whose brand name disappeared once the combined company
launched last spring, is finding itself struggling with what it gave
birth to.
USWeb at the time was competing in a class of companies that were all
doing well in the burgeoning Internet consulting market, alongside
rivals Scient, Razorfish, iXL Enterprises and others, prompting many
traditional consulting firms to sit up and take notice, including
Chicago-based Whittman-Hart.
The deal appeared great on paper, and the time appeared ripe for
Whittman-Hart to make its New Economy move.
"Whittman-Hart bought into the hype," said Joshua Greenbaum, an analyst
who heads Enterprise Applications Consulting. "The idea that your
valuation could go up a factor of 10 is pretty seductive to even the
most sober mind. That was clearly what (Whittman-Hart) had to be
thinking.
"It's a little scary when someone like Whittman-Hart couldn't have seen
their way out of this mess or at least predicted it, but then again,
the mentality was vastly different a year ago," he added.
Several analysts agreed that traditional consultancies had been seduced
by the Internet, especially when a slew of publicly traded Internet
consulting companies had been soaring with high valuations and enjoying
great success. A number of companies, including Accenture (formerly
Andersen Consulting), EDS and others were busy bulking up their
e-commerce practices or partnering with others that had a definite Web
focus.
Eyes bigger than its stomach?
Still, analysts, who have closely followed the relationship, believe it
was more than just gloomy market conditions that helped drag
then-Whittman-Hart from its respectable seat. Some analysts say
Whittman-Hart could have chosen a safer and more successful route by
remaining solo. Others believe the veteran consultancy simply bit off
more than it could chew.
Matassoni agrees on the difficulty of marrying three very different
cultures: technology expertise, strategy and branding.
Whittman-Hart brought significant technology expertise to the new
entity, Mitchell Madison brought the strategy specialists, and USWeb
had earned a solid reputation in branding and design.
"To marry strategy to this new thing called e-strategy had been much
harder than people had realized," Matassoni added. "Classic strategy is
about analysis and imagination, whereas e-strategy is fairly
mechanical. Helping clients build a Web site as fast as you can and
validate their business models is not the same thing as (helping
clients) think through strategy."
Added Rodenhauser: "USWeb was an amalgamation of different (previous)
acquisitions. Whittman-Hart buying USWeb wasn't two distinct entities
coming together to form MarchFirst, it was Whittman-Hart joining this
amalgamation of pieces. It just didn't make sense."
The fact that USWeb had swallowed up some 40 smaller companies in its
history remained a big concern among several industry observers even
after MarchFirst's official launch last spring. Analysts have also
added that the two couldnt have been more different. While
Whittman-Hart's expertise lay in back-office work, such as billing and
accounting, for midsize companies, USWeb focused on pioneering the
sector for Web front-office work, Internet development and design,
along with providing application hosting services.
"Dealing with a number of mergers is tiring, especially in consulting
when your energy should be focused on the clients," Matassoni said.
In the wake of Monday's executive departures, MarchFirst's board has
appointed Steve Pollema, who has been serving as executive vice
president of global operations, as president and has formed a
three-member executive committee to assist MarchFirst through the
management transition.
The company said it has hired recruitment firm Korn/Ferry International
to help the board find a new CEO.
Two of the three members of the executive committee are David Stanton
and Neil Garfinkel, partners in venture capital firm Francisco
Partners, which is a major investor in MarchFirst. The third member is
Barry Moore, vice chairman of Kurt Salmon & Associates.
The company recently received a $12 million interest-free loan from
existing investor Microsoft and a $150 million from Francisco Partners.
Related News
MarchFirst misses again, cuts sales targets February 12, 2001
http://news.com.com/2009-1017-252467.html
MarchFirst wields layoff ax again January 5, 2001
http://news.com.com/2100-1017-250577.html
Net consultancies look to rebuild after sobering year December 20,
2000
http://news.com.com/2100-1017-250100.html
Equity firm doles out $150 million to ailing MarchFirst December 14,
2000
http://news.com.com/2100-1017-249895.html
Consulting firms attempt to impress the Street March 2, 2000
http://news.com.com/2100-1017-237540.html
Get this story's "Big Picture"
http://news.com.com/2104-1017-253920.html
http://www.marusin.com/archives/week_2002_10_06.php
The Ides of marchFIRST
I was part of Internet history... Although my name will not be within
the text (at least it shouldn't be!), marchFIRST will be a Business
Case that students study in years to come (if they haven't started
already). It was an Internet Failure, a complete Internet Disaster (if
you will)...
Marcello Benati was an employee of Whittman-Hart and then marchFIRST at
the same time I was. We actually worked together on an extra-curicular
project where we were trying to document "up and coming" products and
see how Whittman-Hart could implement them (or at least just be aware
of them)... I'm sure if you asked him, he probably doesn't remember me,
but that's not the point.
The point is that Marcello has started writing a book called "The Ides
of marchFIRST" and has just released the first chapter of his book to
The May Report. You can read the first chapter of his book here... I'm
very anxious to read more of this book and see what he has to say. I
guess the book includes actual emails, press releases, "propaganda",
etc. and should be cool to see alot of it again...
To this day, I will admit that my days at marchFIRST were without a
doubt my best working days that I've experienced. My utilization rate
was close to 100% the whole time that they were having problems (I even
got a bonus for that!) and I worked many long hours, but had an awesome
time doing so... The projects I was working on were so cutting-edge and
the people I was working with were not just very smart people and
co-workers, but friends... Work didn't seem like work even when you
were working late because we were having a great time and getting so
much done...
I would do anything to be able to recapture that team of myself, Tom,
Jim, Pat, Dave and all the other folks that made work not seem so much
like work...
Does anyone have more information about Marcello Benati's past. In
particular I would like more information about how and when he obtained
his H-1B visa and what his technical and work background was.
Posted by ZaZona.com.
http://www.tmronline.com/A55951/tmrarticles.nsf/e17dd6a94826afb586256923007a8b6b/c699df576c9fa4cc86256c4c007334cd!OpenDocument
10/08/2002
Special Reports and Features
Chapter I: "The Ides of marchFIRST," by Marcello Benati
[Editor's note: This is copyrighted material and is the property of
Marcello Benati. Do not copy and send or post on any site.]
Date: Sun, 6 Oct 2002 19:54:09 -0500
Organization: Shendriton
Ides of marchFIRST
"CAESAR.
Who is it in the press that calls on me?
I hear a tongue, shriller than all the music,
Cry "Caesar"! Speak, Caesar is turn'd to hear.
SOOTHSAYER.
Beware the Ides of March.
CAESAR.
What man is that?
BRUTUS.
A soothsayer bids you beware the Ides of March.
CAESAR.
Set him before me; let me see his face.
CASSIUS.
Fellow, come from the throng; look upon Caesar.
CAESAR.
What say'st thou to me now? Speak once again.
SOOTHSAYER.
Beware the Ides of March.
CAESAR.
He is a dreamer; let us leave him. Pass."
William Shakespeare
" Our name is a combination of serendipity and strategy:
1. It begins with a point in time. It's a reference to the date of our
founding, March 1, 2000. But that's just the beginning. Ten years from
now, or even five, that date will be distant history. " Robert Bernard
A quote printed on the black notebook every employee received with
their first order of multicolored business cards.
Chapter 1- The Announcement.
Early morning, December 12th 1999. WHISE [1] Center, Chicago,
As I walk through the halls and hoteling spaces in the third floor of
Chicago's West loop Whitman-Hart offices in 320 North Elizabeth St, I
could not help noticing a peculiar feeling and a strange, almost
ominous sense permeating the working space. Usual office sounds and
conversations were muted; people's eyes sought an answer, a reason or a
direction.
The usual mood of the office seemed deeply altered, changed in a subtle
and yet very defined manner which can only be described as a deep mix
of doubt, fear, exhilaration and expectation similar to the feeling you
have when you are waiting in line for a thrill ride on a fast roller
coaster.
This sentiment was becoming manifest in the unusual silence in
everyone's spaces in what I recalled to be a mood typical of a day in
which something big was going to be announced. I had witnessed similar
moods when the company made an acquisition or announced layoffs as a
consequence of redirecting its overall strategies; and again when it
received a large investment from Novell, closed an office or changed
the structure of our core services or offerings.
At Whitman-Hart, change was the only constant to be expected, and the
entire company had the ability to project to the external world the
appearance that it could morph easily to fit the components of a new
vision or strategic change of some form. In reality, this flexibility
was illusory and many internal conflicts ensued out of fear and lack of
communication in clarifying roles and expectations. This left some
people at a loss and disoriented as to their specific career paths and
destinies in the new future of the company. Furthermore, there was an
undoubting and almost cult-like faith in the vision of our charismatic
leader and chairman Robert Bernard, known to all Whitties as simply
"Bob".
One of Bob's best skills was communicating major events and changes to
all employees via the corporate voice mail system. He had excellent
presentation skills and the contagious enthusiasm of a true leader. In
fact, the first time I met him I conjured up a comparison to Caesar.
As history reminds us, a true leader is only as good as the information
and advice he gets. Men are only given one line in history to
characterize their deeds or failures. I dare not to speculate what
Bob's line in history will be, but I can say that after looking at many
facts during my tenure at marchFIRST and during the process of writing
this book, I found that Bob had many counselors willing to cajole him
and feed him only the rosy pictures and not the truth to enable him to
make the right decisions.
Many ex-employees of marchFIRST have chosen Bob Bernard as the
scape-goat and target for their anger, frustration and rage. It is easy
to make someone accountable and it soothes our ego to find a
manifestation of the things we do not understand completely. Again, the
purpose of this book is not to exculpate Bob Bernard. Nor it is to
attack him with conjecture and hearsay. My objective is to share what I
know and to elucidate, as clearly as possible and from my own
perspective, the facts leading to the bankruptcy of marchFIRST.
In the world of consulting in general, it is fundamental to create and
maintain a vast network of contacts both inside and outside the
company. This network consists of an informal alliance maintained by
mutual and common interests and functions best as a tool to discover
leads, competitive information and other seemingly irrelevant bits of
information, which somehow in the long run tend to become valuable to
someone.
Understanding how to leverage one's network and how to share
information with integrity without giving away the farm, requires
experience, clarity, luck and the commitment to maintaining the truth
whilst respecting the network and its worth. It is also important to
remember how and when to separate your personal network from the
company's
networks and vice-versa to prevent conflict of interest. As a wise man
once said," There is no interest if there is no conflict!" and that
summarizes much of what we are experiencing in corporate America today.
My network inside Whitman-Hart was comprised of people at various
levels of the company including administrative assistants, principals
and partners. My network outside the company was mostly made up of
Venture capitalists and investment bankers funding prospective clients
of Whitman-Hart or assisting in some type of new venture by leveraging
an existing brick and mortar company's intellectual aspects.
This network provided and provides me still with bits of interesting
information.
In consulting companies, small or large, the real power rests with
those who hold some knowledge or information enabling them to change
their "modus operandis", preparing or aligning themselves strategically
to meet the changes and challenges to come. It is also important to be
able to know and read the lay of the land in regards to management
involvement or lack of support for a particular venture or initiative.
A clear sign that a senior manager or partner is out of grace with the
"Gods of the inner circle" (whatever it is called in each company)
occurs when he or she is, or appears not to be, privy to the details of
major strategic changes in the direction of the company.
With a little luck, you may become an ally to a partner because he
assumes [2] that you must be in the know he hopes to help you help him.
I understand it seems a little selfish, but that is a reality of the
consulting world, you only grow by making those above you grow and,
specially for partners, they want to make sure each time you reach into
their wallets you are there to add money, not to take any money out!
The reason is simple. In the consulting companies I worked for, people
at all levels have the propensity to protect what they feel is their
turf and will fight, cheat and lie to protect what they feel is their
project, group or initiative. Often, they are fighting to protect their
budget allocation and their internal network.
Now coming back to that morning in Chicago, I did not suspect the
feeling in the air was to become the norm rather than the exception for
the next year and a half of my career. But on that fateful morning, I
knew exactly what was going to be announced to all who would listen,
the reasons being presented and how the scenes were being staged to
manage the impact of the announcement.
By virtue of my placement in the company during a very strategic time I
found I had access to the partners and principals directly involved
with Bernard's inner circle and through normal casual conversations was
able to learn and participate in many of the events and decision
processes that were shaping the future strategies of Whitman-Hart.
In typical Whitman-Hart fashion a corporate announcement email was sent
to all employees at the same time the news about the merger were made
public. At about 9am, all employees received a voice mail from Bob and
announcing the time for conference call with the two CEOs (Robert
Bernard of Whitman-Hart and Robert Shaw of USWEB/CKS)The call was to
share with all employees from all the merged companies, the vision of
the biggest merger in the consulting industry.
The air in the office changed instantaneously and it suddenly became
euphoric. High fives all around and smiles abundant. The release
finally had come.
Overnight we were transformed from a small Midwest IT focused
consulting services company with 42 offices in the US to the big league
international, pure play internet strategy, technology and marketing
megalith with 150 offices in 14 countries.
Whitman-Hart was known in the consulting world as the plumbers of the
IT industry. Our consultants were respected and got the jobs done on
time and on budget and all efforts were made by management to keep
clients satisfied. The greatest percentage of our business was repeat
business.
Suddenly, it felt as if the foreman in a construction site was promoted
to chief architect in a project without having the time to catch up on
the lingo and in the ways of the world.
I read through the barrage of emails and communication about my
projects. My first order of business for that day was to compose an
email to Bob Bernard congratulating him on his vision and foresight to
make such a bold move and wishing him the best of luck, as well as
offering my support and experience for the transition.
My second email that morning went to Joe Firmage[4](former chairman of
USWEB), to ask him what he knew and felt about the construct of the
deal.
When I received the email reply from Firmage, later that day, my
suspicions were confirmed...
This was the beginning of the end...
PS:
I Have included copies of various announcements from my email files.
[1] WHISE- Whitman-Hart Institute for Strategic Education. One of WH
greatest attribute for applicants and existing employees was the
position it had in regards to staff and career development through
internal training and skill maintenance.
WHISE courses showed an investment in the people and afforded employees
the best available skill set maintenance.
[2] ASSUMES- Makes an A** out of U and ME.
[3] Usual Suspects- Managers, administrative assistants and bench
consultants wondering if they will get placed in one of my accounts.
[4] Joseph Firmage: former CEO of USWEB, who was politely asked to
resign from his post in USWEB for declaring that he believed in
technology exchanges between humans and extraterrestrial life forms.
Joe Dedicated some 200 Million of his fortune from USWEB stock for the
creation of ISSO (International Space Sciences Organization and SETI).
Notes of Reference/ Chapter 1:
1: Novell Deal
Novell furthers service push with Whittman-Hart stake
By Melanie Austria Farmer
Staff Writer
September 30, 1999, 7:35 AM PT
http://news.com.com/2100-1017-230798.html
In an effort to target the middle market, Novell today announced it
will invest $100 million in management consulting firm and systems
integrator Whittman-Hart.
Whittman-Hart said it will help deliver and implement Novell Directory
Services (NDS), which includes Novell's flagship network software
products, for small to midsized businesses.
Under the terms of the agreement, Provo, Utah-based Novell will
purchase $100 million worth of Whittman-Hart stock, the companies said
in a statement. The investment will also represent approximately 6
percent of Whittman-Hart's outstanding capitalization.
Novell said the Whittman-Hart alliance marks its first investment in a
new initiative to expand its partnerships with consulting firms and
systems integrators.
In addition, both companies said they will jointly develop customized
NDS products and services for the middle market. The products will
integrate NDS with other business management applications, such as
customer relationship management, supply chain management, and
enterprise resource planning software.
Whittman-Hart said it will set up a development center to train
employees on the new products as well as demonstrate them to customers.
The Chicago-based firm said it will also train over 600 consultants in
NDS and other Novell products.
Each company's board of directors has voted to approve the investment,
and they expect to close the deal by next month, the two companies
said.
Press Release From Novell:
Novell to Invest $100 Million in Whittman-Hart to Accelerate Deployment
of Directory-based Computing Solutions to Growing, Mid-Sized Businesses
Investment is First Step in Novell's Strategic Services Initiative
PROVO, Utah and CHICAGO - Sept. 30, 1999 - Novell, Inc. (NASDAQ:NOVL)
and Whittman-Hart, Inc. (NASDAQ:WHIT), a leading provider of integrated
business and technology solutions for growing and middle-market
companies, today announced that Novell will invest $100 million in
Whittman-Hart to accelerate the deployment of NovellR Directory
ServicesR (NDSR) in enterprise and e-business solutions. This
investment and strategic alliance will help meet the needs of customers
in mid-sized businesses for secure, manageable e-business solutions
that span the enterprise and the Internet. The investment is the first
step in a new Novell initiative to expand its partnerships with leading
consulting and systems integrator organizations worldwide.
Under the terms of the investment agreement, Novell will purchase $100
million worth of Whittman-Hart stock. This investment will represent
approximately 6 percent of Whittman-Hart's outstanding capitalization.
In addition, the two companies have formed an alliance to jointly
develop customized NDS solutions for mid-sized businesses. These
solutions will integrate NDS with leading e-business applications such
as customer relationship management, supply chain management,
enterprise e-business tools and Enterprise Resource Planning extended
to the Internet. Whittman-Hart will also establish a Solutions
Development Center to train employees on these solutions and
demonstrate them to customers. Whittman-Hart will train over 600
consultants in NDS and related Novell solutions, including
qualification of these consultants as Novell Certified Directory
EngineersSM.
"We invested in Whittman-Hart to drive the growth of directory-based
solutions that are becoming critical to the way information is managed
and accessed in a networked world," said Dr. Eric Schmidt, Novell
Chairman and CEO. "This agreement is an important component in an
ongoing series of Novell strategic investments and alliances that are
speeding the deployment of directory solutions worldwide. The
combination of Novell's networking expertise, along with
Whittman-Hart's solutions expertise, will meet the needs of customers
in mid-sized businesses for more efficient and secure management of
their business networks and the Internet."
"Whittman-Hart clients are using e-business technologies to extend
their enterprises and better manage relationships with customers,
employees, and suppliers," said Robert Bernard, Whittman-Hart Chairman
and CEO. "The solutions we develop based on NDS represent a huge
opportunity for our clients to better manage their private networks and
Internet security."
NDS, Novell's industry-leading full-service directory, provides
centralized network management and security that reduces the cost and
complexity of deploying mission-critical applications on heterogeneous
business networks and the Internet. Novell is pursuing investment
opportunities in consulting and services companies around the world
focused on specific application areas supported by NDS, including
customer relationship management, supply chain management and
e-business.
Novell and Whittman-Hart have executed a definitive agreement, and each
company's Board of Directors has voted to approve the investment and
alliance. Novell and Whittman-Hart expect to close the agreement by
November 1999, following government approval under the
Hart-Scott-Rodino Act.
About Novell
Novell, Inc. is the world's leading provider of directory-enabled
networking software. Novell solutions give businesses total control of
their private networks and the Internet, simplifying the management of
user access and identity. Novell's worldwide channel, consulting,
developer, education and technical support programs are the most
extensive in the network computing industry. For information on
Novell's complete range of products and services, contact Novell's
Customer Response Center at (888) 321-4CRC (4272), or visit Novell's
Web site at http://www.novell.com.
About Whittman-Hart
Headquartered in Chicago, Whittman-Hart helps clients improve
marketplace performance through the strategic use of information
technology. In 1999, FORTUNE ranked Whittman-Hart as one of America's
Fastest-Growing Companies. In 1998 and 1997, Forbes named Whittman-Hart
one of the 200 Best Small Companies in America. In 1998, Standard &
Poor's added the Company to its S&P SmallCap 600 Index. Whittman-Hart
has approximately 3,700 employees in 21 branch offices throughout the
United States and the United Kingdom. Its Web site is
www.whittman-hart.com.
Novell, NDS and Novell Directory Services are registered trademarks,
and Novell Certified Directory Engineer is a service mark of Novell,
Inc. in the United States and other countries. All third-party
trademarks are the property of their respective owners.
Novell Press Contacts:
Jonathan Cohen
Novell, Inc.
Phone: (408) 967-7268
Internet: jcohen@novell.com
Katie Hogan
Cunningham Communications
Phone: (650) 858-3760
Internet: khogan@ccipr.com
Whittman-Hart Press Contacts:
Dean Dranias
Whittman-Hart, Inc.
Phone: (312) 602-6155
Internet: d.dranias@whittman-hart.com
Marnie Gordon
Edelman Publications
Phone: (312) 240-2633
Internet: mpgordon@edelman.com
USWeb/CKS to merge with Whittman-Hart
By Melanie Austria Farmer
Staff Writer
December 13, 1999, 7:50 AM PT http://news.com.com/2100-1040-234307.html
USWeb/CKS and Whittman-Hart today said they plan to merge in a
stock-for-stock deal that will create a combined company with a market
worth of about $14 billion.
Under the deal, professional services firms USWeb/CKS and Whittman-Hart
will combine their strategies to focus mainly on Internet projects,
including helping companies from "dot-com" start-ups to Fortune 500
giants with their Internet business models, the companies said in a
statement.
The deal sent both companies' stock sliding. Shares of Whittman-Hart
plummeted 29 percent to 56.25 in early afternoon trading, while
USWeb/CKS dropped nearly 12 percent to 44.94.
The companies said they will merge in a stock swap in which each
outstanding share of San Francisco-based USWeb/CKS will be exchanged
for 0.865 shares of Whittman-Hart stock. Following the merger,
USWeb/CKS shareholders will own approximately 57 percent of the
combined company and Whittman-Hart shareholders will own about 43
percent, the companies said. Based on Whittman-Hart's closing price on
Friday of 79.25 and the exchange ratio, the combined company will have
a market capitalization of approximately $14 billion on a fully diluted
basis.
USWeb and Whittman-Hart were not immediately available for comment.
Both companies compete in the growing services market against EDS, CSC,
Andersen Consulting, PricewaterhouseCoopers and other smaller, boutique
firms such as Razorfish, Viant, Scient and Proxicom. The industry has
seen a shift in business focus to more lucrative Internet-driven
projects and consulting deals as more companies make the transition to
the Web.
Following the merger, Whittman-Hart chief executive Robert Bernard will
be chief executive and president of the new company while USWeb's chief
executive Robert Shaw will take the role of chairman of the board, the
companies said. Whittman-Hart chief financial officer Bert Young and
USWeb/CKS chief operating officer Robert Clarkson will be chief
financial officer and chief operating officer, respectively. The
nine-person board of directors will include four directors from
USWeb/CKS, four from Whittman-Hart, and one additional person to be
selected. The new company's corporate headquarters will be in Chicago,
with executive offices in San Francisco, the companies said.
Together, the companies said they will tackle client relationships by
continuing to manage them locally; marketing and creative services by
providing them jointly in major markets; and strategy services,
including digital business strategy and Internet services, by
delivering them from a pool of consultants with specific market space
expertise.
USWeb/CKS and Whittman-Hart said they plan to continue to develop and
offer managed services and application hosting services, which was a
strong portion of USWeb's business focus.
The deal is subject to customary closing conditions, including approval
of the stockholders of both companies and regulatory review. The merger
is expected to be completed by April of 2000, the companies said.
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