Troubled Internet consulting firm
disclosed plans to eliminate 1,700 employees, or 30% of the company's staff, and agreed to sell some of its operations to
, a Chicago-based Web enterprise software and services concern.
MarchFirst is selling its central region business unit, along with other offices and assets, to divine for $6.25 million and a $27.75 million note payable over no more than five years. MarchFirst could also receive up to $39 million more, payable over five years, depending on the unit's future performance.
The company also agreed to sell its SAP practice, its value-added reseller business and other assets, to divine. MarchFirst will receive $6.25 million and a $29.75 million note payable over a maximum of five years. The company could also collect as much as an additional $16 million, which would be payable during the next five years if the operations meet certain performance targets.
MarchFirst said the operations that are being sold employ 2,100 workers. In addition, the company said the maturity of its loan agreement with
American National Bank & Trust
has been extended through June 15. The company "continues to have significant liquidity difficulties and is pursuing alternatives to satisfy obligations to the bank and other creditors and meet the needs of its employees and clients."
Finally, MarchFirst said it is "actively pursuing" sales of other business units. The company is also closing its Australian operations.
Shares of MarchFirst last traded on the
at 14 cents. The 52-week high is $37.06, while the low for the last year is 13 cents.