Francisco Partners is to invest $150 million in the global professional services company, MarchFirst.
“This capital, coupled with our operating cash flow, will give us the flexibility to execute our year 2001 business plan and our global client relationship model,” said Robert Bernard, MarchFirst chairman and chief executive officer. “We intend to focus on driving operational excellence and leveraging our core capabilities to help our clients get closer to their customers while maximizing their operational efficiencies.”
Francisco Partners has purchased 63,053 shares of MarchFirst’s Series A, 8% convertible preferred stock and 86,947 shares of MarchFirst’s Series B, 12% preferred stock for $1,000 per share. The Series A shares will be convertible at any time into shares of MarchFirst common stock at a price of $2 per share. Upon approval by MarchFirst stockholders, the Series B shares would convert into Series A shares on a one-for-one basis.
The company creates and delivers customer outreach and enterprise improvement solutions for Global 3000 corporations and leading emerging companies. It helps its clients connect with their customers, optimize their business infrastructure and maximize their assets. It serves seven industry sectors: manufacturing; financial services; high tech and telecommunications; consumer products/retail; health care; media, entertainment and communications, and transportation/travel and leisure. Headquartered in Chicago, MarchFirst has offices in 16 countries.
This $2.5 billion private equity firm, focused on structured investments in technology companies, was formed by David Stanton, Sanford Robertson, Benjamin Ball, Dipanjan Deb and Neil Garfinkel. Francisco Partners targets public companies, divisions of public companies and private companies with transaction values ranging from $50 million to $2 billion. Their investments include the purchase of Globespan and Paradyne from Lucent Technology; the purchase of Legerity from Advanced Micro Devices; the purchase of XcelleNet from Sterling Commerce; the pending purchase of American Microsystems from Japan Energy Corporation; the purchases of GT Com and Zilog, and the $1.8 billion purchase of ON Semiconductor from Motorola.
In addition to its internal resource base, Francisco Partners has an exclusive long-term relationship with Sequoia Capital, one of the most prominent and successful venture capital firms in Silicon Valley. Founded in 1972, Sequoia Capital has provided early stage capital to over 350 technology companies including 3Com, Apple, Cisco, Oracle, and Yahoo!.