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October 23, 2006

AT&T Completes Acquisition of USi

By Johanne Torres, TMCnet Contributing Editor

AT&T has completed the acquisition of independent Applications Service Provider (ASP) USinternetworking (USi). The telecom giant announced its plan to acquire the company last month. AT&T (News - Alert) completed the transaction after acquiring USi for approximately $300 million in cash and assumed debt.


“This transaction strategically aligns USi’s software and eBusiness management services and consulting expertise with AT&T’s existing portfolio of enterprise hosting and managed services,” said AT&T’s Group President Forrest Miller in a statement. “We look forward to combining USi’s technology and expertise in applications management with AT&T's global reach, networking expertise and extensive hosting capabilities, which will broaden the range of solutions we offer our customers.”

USi manages enterprise software systems and on-demand services. The company also provides software management and outsourcing services for business software from companies like Oracle (News - Alert), PeopleSoft, Siebel, Microsoft (News - Alert), IBM (News - Alert) WebSphere and Ariba. USi also develops, hosts and manages customized eCommerce systems.

“USi’s depth of experience, innovative and proprietary technologies, and client-centric approach position us solidly as a market leader in delivering managed applications services,” said Andrew A. Stern, who will remain as USi’s chief executive officer. “Our clients and prospective clients have responded favorably to the acquisition. By combining our capabilities with AT&T’s market access and complementary service offerings we will be able to introduce new capabilities and service offerings more rapidly, without deterring our focus on delivering individualized client service.”

Today’s news follows AT&T’s announcement last week about inking a new networking contract with arvato services to support the company’s call centers in Argentina and Canada. The company had been looking for a solution that will enable it to provide telemarketing services to Spanish and English-speaking markets globally.

Specifically, the new contract calls for AT&T to provide arvato with an Internet Protocol Virtual Private Network (IP VPN). The network will enable arvato to further increase its client base, currently comprised of banks, insurance companies, airlines, technology firms and automotive companies.

USinternetworking
AT&T Inc.
http://www.att.com

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Johanne Torres is contributing editor for TMCnet and INTERNET TELEPHONY magazine. To see more articles by Johanne Torres, please visit her columnist page.

(source: http://news.tmcnet.com/news/2006/10/23/2006518.htm)

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