USinternetworking
{{Short description|Application service provider}}
{{Infobox company
| name = USinternetworking, Inc (USI)
| fate = Acquired by AT&T
| founded = {{start date and age|1998|01}}
| founders = Christopher R. McCleary
Chris Poelma
| defunct = {{end date and age|2006|10|20}}
| location = Annapolis, Maryland
}}
USinternetworking, Inc. (USi) was an application service provider. It offered outsourced business applications delivered over the Internet or a private network connection for an installation charge and a flat monthly fee. In October 2006, it was acquired by AT&T.
History
The company was founded in January 1998 by Christopher R. McCleary, Chris Poelma and Stephen McManus
Early investors included Grotech{{cite news | url=https://www.washingtonpost.com/wp-dyn/articles/A43495-2005Jan2.html | title=Grotech Hopes to Repeat Success of Long John Silver's | first=Terence | last=O'Hara | newspaper=The Washington Post | date=January 3, 2005}} and US West.{{cite news | url=https://www.bizjournals.com/baltimore/stories/1999/01/25/story1.html | title=USi to raise $86M in IPO | first=William | last=Glanz | work=American City Business Journals | date=January 25, 1999}}
In February 1998, the company pursued a merger with PSINet but was rejected.{{cite news | url=https://www.wsj.com/articles/SB888183544836286000 | title=USinternetworking Won't Pursue Its Proposed Acquisition of PSINet | work=The Wall Street Journal | date=February 23, 1998 | url-access=subscription}}
In May 1998, the company signed a lease for its 24,000 square foot office.{{cite news | url=https://www.bizjournals.com/baltimore/stories/1998/05/11/story1.html | title='Net exec wired for growth | first=David | last=Harrison | work=American City Business Journals | date=May 11, 1998}}
On April 9, 1999, during the dot-com bubble, the company became a public company via an initial public offering. Shares rose 174% on the first day of trading, ending the day at $57.50 per share.{{cite news | url=https://money.cnn.com/1999/04/09/markets/techwrap/ | title=Nets roll, but Compaq warns | work=CNN | date=April 9, 1999}}{{cite magazine | url=https://www.wired.com/1999/04/yet-another-big-ipo-day/ | title=YET ANOTHER BIG IPO DAY | first=CRAIG | last=BICKNELL | magazine=Wired | date=April 9, 1999}}
On April 26, 1999, the company was named the first certified Broadvision application service provider.{{cite press release |title=USinternetworking is named the first certified Broadvision Application Service Provider | url=https://www.prnewswire.com/news-releases/usinternetworking-is-named-the-first-certified-broadvision-application-service-provider-74210787.html | publisher=PR Newswire | date=April 26, 1999}}
In November 1999, the company announced an agreement to develop Microsoft Office 2000 as an online service.{{cite news | url=https://www.geek.com/news/office-2000-for-rent-566506/ | title=Office 2000 for rent | work=Geek.com | date=November 12, 1999 }}{{Dead link|date=September 2024 |bot=InternetArchiveBot |fix-attempted=yes }}
In July 2000, founder Christopher R. McCleary resigned as chief executive officer of the company and was replaced with Andrew Stern.{{cite news | url=https://www.washingtonpost.com/archive/business/2000/07/25/founder-steps-down-as-chief-executive-of-usinternetworking/3fe13434-1d74-42c6-b13a-ad079bfd73dc/ | title=Founder Steps Down As Chief Executive of USinternetworking | first=Yuki | last=Noguchi | newspaper=The Washington Post | date=July 25, 2000}}
In August 2000, the company acquired EnableVision.{{cite news | url=https://www.bizjournals.com/baltimore/stories/2000/08/28/daily21.html | title=USi buys New Jersey firm | work=American City Business Journals | date=August 31, 2000}}
By July 2001, after the bursting of the dot-com bubble, shares were trading for $1 each.{{cite news | url=https://money.cnn.com/2001/07/10/markets/hotstox/index.htm | title=Hot Stocks: Deep discount | work=CNN | date=July 10, 2001}}
In January 2002, the company filed bankruptcy. It emerged in May 2002 with financing from Bain Capital and a merger with Interpath.{{cite news | url=https://www.washingtonpost.com/archive/business/2002/05/22/usinternetworking-out-of-bankruptcy/3cabf60a-3d0a-43e7-bc35-0cccecfab422/ | title=USinternetworking Out of Bankruptcy | first=Yuki | last=Noguchi | newspaper=The Washington Post | date=May 22, 2002}}{{cite news | url=https://www.crn.com/news/channel-programs/18828409/usi-merges-with-interpath-emerges-from-bankruptcy.htm | title=USi Merges With Interpath; Emerges From Bankruptcy | first=Christina | last=Torode | work=CRN | date=May 22, 2002}}
In September 2003, Stephen A. Mucchetti was named chief operating officer of the company.{{cite news | url=https://www.washingtonpost.com/archive/business/2003/09/03/former-ibm-executive-to-join-usinternetworking/bc5e00f1-d41e-4a6a-955f-64e54286330f/ | title=Former IBM Executive To Join USinternetworking | first=Yuki | last=Noguchi | newspaper=The Washington Post | date=September 3, 2003}}
In June 2004, the company acquired Appshop for between $40 million and $50 million.{{cite news | url=https://www.washingtonpost.com/wp-dyn/articles/A8269-2004Jun1.html | title=USi to Buy Software Firm | first=Yuki | last=Noguchi | newspaper=The Washington Post | date=June 2, 2004}}
In October 2006, AT&T acquired the company for $300 million.{{cite news | url=https://www.networkworld.com/article/2300572/infrastructure-management/at-t-closes-usi-deal.html | title=AT&T closes USi deal | first=Denise | last=Pappalardo | work=Network World | date=October 20, 2006 }}
References
{{Reflist}}
{{AT&T}}
{{Dot-com Bubble}}
Category:1998 establishments in Maryland
Category:1999 initial public offerings
Category:Companies formerly listed on the Nasdaq
Category:Companies that filed for Chapter 11 bankruptcy in 2002
Category:2006 mergers and acquisitions